Sector Insights: Hospitality & Leisure in Portugal by The Business Year

HOSPITALITY & LEISURE IN PORTUGAL SECTOR INSIGHTS

Sector Insights: Portugal Hospitality & Leisure

FROM THE EDITOR’S DESK

THE BUSINESS YEAR SECTOR INSIGHTS: PORTUGAL HOSPITALITY & LEISURE ortugal, with its pleasant climate, deep history, and stunning landscapes, has emerged as a compelling destination for visitors looking to stay a few days, a week, or even longer. In this Sector Insights report, we talk to the figures leading growth and innovation in the sector. The hospitality sector in Portugal is experiencing a renaissance, driven by a combination of warm hospitality and strategic business opportunities. The country's commitment to providing exceptional guest experiences is mirrored in its diverse range of accommodation options. From luxury resorts to boutique hotels and charming guesthouses, investors have a plethora of choices to tailor their offerings to the discerning preferences of both leisure and business travelers. Portugal's strategic geographical location as a gateway to Europe and Africa enhances its appeal for businesses aiming to establish a foothold in the region. The hospitality industry, in particular, benefits from this accessibility, with an increasing number of international conferences and events choosing Portugal as their host country. The modern conference facilities and convention centers in cities like Lisbon and Porto provide ideal venues for business meetings and corporate events, contributing to the sector's growth. The leisure sector complements the business landscape, offering unique experiences that cater to both corporate retreats and individual travelers. The country's culinary scene, a blend of traditional flavors and innovative cuisine, presents opportunities for investors interested in the food and beverage sector. Establishing high-end restaurants or partnering with local culinary talents can be a lucrative venture in a market where gastronomy plays a pivotal role in the overall tourist experience. Portugal's commitment to sustainable tourism is also noteworthy. The government actively encourages eco-friendly initiatives, creating opportunities for businesses focused on environmentally conscious practices. From eco-resorts to adventure tourism in the Azores, investors can capitalize on the growing demand for sustainable and responsible travel experiences. Portugal's hospitality and leisure sector is not only a testament to the nation's warm welcome, but also a strategic business venture for investors. The combination of diverse accommodation options, strategic location, and a commitment to sustainable tourism positions Portugal as a business haven in the European market. As the country continues to evolve, savvy investors have the chance to be part of a dynamic industry that promises both financial success and the satisfaction of contributing to Portugal's growing reputation as a premier destination for business and leisure alike. ✖

This publication has been produced by The Business Year International’s expert cadre of journalists, writers, editors, and designers. The content contained within is original and was compiled by our team on the ground.

Project Director Cristina Villegas ISBN 978-1-80506-014-7

www.thebusinessyear.com

Sector Insights: Portugal Hospitality & Leisure

CONTENTS

2 1

From the editor's desk

Engines for change • Communique: The Historic Villages of Portugal

Mariano Faz, CEO, Ace Hospitality Management • Interview

Gonçalo Rebelo de Almeida, CEO, Vila Galé Hotels • Interview

Ana Cristina Beatriz, CEO, ABC Sustainable Luxury Hospitality • Interview

3 A place in the sun • Infographic

4 Nuno Fazenda, Secretary of State for Tourism, Commerce & Services • Interview

27 Time to check in • Infographic: Hotels

Raul Almeida, President, Turismo Centro de Portugal • Interview

Exclusive retreat relaxed vacation • Communique: Sheraton Cascais Resort

Alexandre Marto Pereira, CEO, United Hotels of Portugal • Interview

Glorious Eden • Communique: Parques de Sintra

Margarida Almeida, Founder & CEO, Amazing Evolution • Interview

Bernardo Trindade, President, Associação da Hotelaria de Portugal (AHP) • Interview

Miguel Franco de Sousa, President, Portuguese Golf Federation • Interview

Miguel Velez, Founder & CEO, Unlock Hotels • Interview

Pedro Fontainhas, Managing Director, APR Portugal • Interview

Travel independently with charm: A business people to people • Communique: Across Portugal

11 Cristina Siza Vieira, CEO, Associação da Hotelaria de Portugal (AHP) • Interview

12 Let the light in • Communique: The Lumen Hotel

Hole-in-one • Focus: Golf Tourism

Oliver Key, General Manager, Penha Longa Resort • Interview

An ESG twist • Focus: Sustainability

Winding Rivers • Communique: Rio-a-Dentro

Where events take place • Focus: MICE Tourism

Fermín Carmona, CEO, Hotelverse • Interview

The new Five-Star haven in the heart of Porto • Communique: Wine & Books Hotels Porto

Karina Simões, Head of Hotel Advisory, JLL Portugal • Interview

Those behind the magic • Focus: Developing skilled tourism workers

19 Dália Palma, Fair Manager, BTL-Bolsa Turismo de Lisboa • Interview

41 The place to be • Communique: WOW Porto

Gonçalo Garcia, Head of Hospitality Portugal, Cushman & Wakefield • Interview

The unifying power of food • Communique: WEAT

Wine & rest • Communique: Palácio Ludovice Wine Hotel

Fernando Garrido, President, Associação dos Directores de Hotéis de Portugal (ADHP) • Interview

57 An Oasis of Luxury and Serenity in the Algarve • Communique: Vilalara Thalassa Resort

58 Carlos Santiago Neto Brandão, President, Estoril Higher School of Hotel Management and Tourism (ESHTE) • Interview

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

INFOGRAPHIC: TOURISM SNAPSHOT

A PLACE IN THE SUN Portugal is Europe's ninth largest recipient of foreign tourists and has rebounded well since COVID-19 brought the sector grinding to a halt.

REGIONS BY SHARE OF INTERNATIONAL ARRIVALS (AGGREGATE OF 2019, 2022 FIGURES) SOURCE: STATISTA

TOP EUROPEAN COUNTRIES BY INTERNATIONAL TOURIST ARRIVALS (PRE PANDEMIC, 2019) SOURCE: UNWTO

90.9M

83.5M

FRANCE

SPAIN

51.2M

64.5M

TURKEY

ITALY

39.4M

39.6M

GERMANY

31.3M

31.9M

GREECE

AUSTRIA

24.5M

20.1M

PORTUGAL

NETHERLANDS

2019

2022

3% ALENTEJO

LISBON

SOURCE: REUTERS

6.3

10% CENTRAL

37%

HOTEL STAYS IN MILLIONS (JANUARY-JUNE)

7.4

19% NORTHERN

8.2 22% ALGARVE

2023

TOP-3 1H2023 VISITORS BY SOURCE SOURCE: REUTERS

SPAIN

2.5%

AZORES

6.5%

MADEIRA

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

YOU’RE VERY WELCOME Nun o F a ze n d a S E C R E TA R Y O F S TA T E F O R T O U R I S M , COMMERCE & SERVICES

The Secretariat of Tourism, Commerce & Services has just helped deliver the best year yet for Portuguese tourism and is committed to making sure things only continue to get better. With Portugal surpassing its 2019 tourism records in 2023, what strategic initiatives has the government implemented to sustain and foster this growth while ensuring sustainability and authenticity?

Until August 2023, Portugal achieved record levels of overnight stays (+9%) and touristic revenues (+39%) compared to the same period of 2019. To sustain and foster this growth while ensuring sustainability and authenticity means to continue expanding tourism to the entire territory, particularly in the countryside, throughout the year and, at the same time, accelerating the twin transition (climatic and digital) in the tourism sector. To achieve these goals, we are also committed to funding tourism investment projects that demonstrate sustainability across various dimensions, supporting and prioritizing investments in technology, infrastructure, and human resources. Considering that investing in people is also essential to achieve sustained growth, we have been implementing a set of specific measures to valorize tourism professionals, attract more individuals to work in the industry, improve their incomes, enhance the qualifications of these professionals, and embrace diversity, valuing differences. The recent award from the World Tourism Organization (UNWTO) in the category of "Best Tourist Villages 2023," awarded to the Portuguese villages of Manteigas and Sortelha, among others, is an international recognition of the work that has been done to preserve the socio-cultural authenticity of local communities, namely in the interior, fostering respect for their traditions and ways of life, as well as safeguarding their environmental and cultural heritage. Given the recent statistics indicating a significant increase in tourist activity and revenue, how is the government collaborating with stakeholders in the hospitality sector to capitalize on these positive trends and further enhance Portugal's position in the global tourism market?

As a multisectoral activity that covers a diversity of stakeholders throughout its entire value chain, tourism has the power to mobilize other sectors. Therefore, strengthening Portugal's position in the global tourism market implies an integrated approach that involves governments, businesses, non-governmental organizations, local communities, and tourists themselves. We have been working closely with the stakeholders, developing specific tools to requalify the offer and allow better planning and management of environmental risks, financing small businesses and providing support for energy conversion, and improving water efficiency and the adoption of circular economy practices, on top of additional measures, such as recognizing exemplary labor practices and providing training opportunities to either grant or increase financial support. Can you elaborate on specific measures taken to promote year-round tourism and distribute it evenly across various regions of the country?

The government has launched the Tourism Agenda for the Interior, a concrete policy to promote tourism in the interior regions of the country, with the goal to achieving year-round tourism across the entire territory, enhancing the quality of life for locals, attracting people to the region, and revitalizing the places, traditions, history, and local culture. Additionally, we are committed to the development and promotion of new and differentiated products, which adds value to the territories, such as wine tourism, literary tourism, cultural tourism, art, architecture, and others. Through differentiated tourism experiences, we aim to make Portugal more attractive, particularly to more demanding segments, and fulfill the objective of growing better, throughout the year, and across the entire territory. In addition, we are running a national and international tourism campaign aimed at providing more visibility to these products and regions.

Sector Insights: Portugal Hospitality & Leisure

In light of the recovery, could you discuss the role technology and innovation play in shaping the tourism experience in Portugal, and how the government is supporting the integration of these elements into the hospitality sector?

Innovation is an important pillar of the Portuguese Tourism Strategy and this includes the Tourism 4.0 program to promote Portugal as a global innovation hub with four main objectives: foster entrepreneurship as a vehicle for innovation and the creation of new companies; transfer knowledge to companies, connecting producers of innovation and companies that must apply it in their businesses; lead the innovation process, anticipating future changes in tourism; and train companies and human resources in the area of innovation. One of the fundamental pillars of this strategy is the Fostering Innovation in Tourism (FIT) Program, which boosts investment in tourism innovation, involving a network of incubators, investment institutions (starting with our partner Portugal Ventures), and science and tech companies as final beneficiaries of the innovation process. In the six years of this program, investments of more than EUR6 million has made it possible to create a network of 50 incubators. Added to this program is the landmark creation of NEST - Tourism Innovation Center, which has been an integral part of the strategy with its focus on the tourism experience, sustainability solutions, and big data. Sustainability is a key focus for the future growth of tourism in Portugal. Can you share any specific policies or initiatives the government has implemented to ensure the industry's sustainable development and minimize its environmental impact?

The Portuguese Tourism Strategy constituted a milestone in tourism policy, placing sustainability at the core of the strategic options. The government developed an action plan that aims to contribute to stimulating the circular economy in tourism, promoting the transition to an economic model based on prevention, reduction, reuse, recovery, and recycling of materials, water, and energy, thus reinforcing the agenda for the circular economy in the tourism sector and placing the tourism

ecosystem at the forefront of the climate transition. Additionally, Portugal has engaged regions via the establishment of regional sustainable tourism observatories and there are five already established, which are being integrated into the UNWTO INSTO network. Portugal ranks as the fifth country worldwide with the highest use of renewable energies—60% of the energy produced comes from renewable sources and Portugal was the first country to chart a definitive roadmap for carbon neutrality, pledging to achieve this milestone by 2045, five years ahead of the timeline outlined in the Paris Agreement. The World Tourism Organization notes a global tourism recovery between 80% and 95% of 2019 levels. How does Portugal's performance compare to these global trends, and what strategies does the government have in place to address any challenges or capitalize on emerging opportunities in the evolving global tourism landscape?

The tourism sector in Portugal recovered pre-pandemic results in a record time of just over a year and is one of the countries in Europe that recorded the greatest growth compared to 2019 results. In 2022, Portugal reached EUR21.1 billion in revenues, registering an increase of 15% compared to 2019, which represents 16% of GDP and marked the highest tourism numbers the country has ever seen. We trust that the growth of 2023 will be even bigger, so the Portuguese government stands by its mission of growing better, respecting the limits of the planet and its resources, generating value, and achieving long-term sustainability. The linear production and consumption paradigm that prevailed until the 21st century is being replaced by a circular and regenerative one, where nothing is wasted and everything is transformed, producing a positive impact in the territories, environment, and communities. Indeed, sustainability is only the starting point for a new paradigm, the regeneration. Portuguese tourism aims to be at the forefront of this transformation and actively contribute to the five major priorities of humanity: people, planet, prosperity, and peace, aligning its policies with the Sustainable Development Goals (SDGs). ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

THE CENTER OF THINGS R a ul Al me i d a P R E S I D E N T, TURISMO CENTRO DE PORTUGAL

Turismo Centro de Portugal is keen to transform the center of Portugal into a global beacon of sustainable, diverse tourism—and it’s well on the way. In light of the region's rich historical and cultural heritage, how does Turismo Centro de Portugal plan to leverage these assets to attract diverse tourism in the coming years?

The central region of Portugal has enormous potential in terms of tourism, which has only recently begun to be discovered at an international level. We are, as you say, a region with a wealth of history and culture that is on a par with the best regions in Europe. We have a wide range of assets and diversified resources that can please all segments of visitors. Those who visit the center of Portugal can find nature in its purest state, as well as cities with an increasingly vibrant dynamism. This territory includes parks and nature reserves, protected landscapes, four UNESCO World Heritage sites (namely the Monastery of Alcobaça, Monastery of Batalha, Convent of Christ, and University of Coimbra, Alta, and Sofia), creative cities, thermal baths and spas, international religious tourism destinations, historical, schist, and mountain villages, as well as castles, monasteries, and convents, where you can breathe in the history of this country. Moreover, there is a vast intangible heritage, such as the most remote traditions, excellent wines, and age-old gastronomic recipes. All these assets are promoted by Turismo Centro de Portugal, through various structuring documents and in close collaboration with private companies, local authorities, associations, and other local tourism stakeholders. The region's tourism demand figures, which broke records in 2023 and show an increasing diversity of visitors, are proof that this is the correct strategy. How does the organization plan to sustain and further enhance its position in the competitive tourism landscape?

The Centro de Portugal Regional Tourism Authority has received several distinctions and awards over the last few years, all of which recognize the quality of our work and the effective-

ness of our strategy. These honors encourage us to continue our commitment to constantly improve the promotion of the region, both within the country and internationally. Tourism is an extremely competitive and demanding area, so we can never take anything for granted. That's why we periodically review our strategy and come up with new solutions in order to sustain and, preferably, increase the region's national and international reputation. To give you an example, by the end of the year we expect to have finalized the Strategic Reference 2030, which outlines the main areas of strategic intervention that we will develop and implement over the coming years, considering the new trends in tourist demand and growing sustainability concerns. With the increasing importance of sustainability in tourism, what initiatives or strategies does Turismo Centro de Portugal have in place to ensure responsible tourism development and minimize the environmental impact of tourism activities in the region?

Sustainability is a word that has fortunately entered the tourism lexicon. However, due to the specific characteristics of the center of Portugal, it is a concept that has long been part of our priorities. There was little talk of sustainability, and it was already a concern for Turismo Centro de Portugal. I could give several examples of initiatives at this level, but I must mention the "Sustainable Centre" project, which we started in 2021 in partnership with Biosphere Portugal. It is an ambitious and labor-intensive project that aims to create the conditions, throughout the territory, for the center of Portugal to be the first tourist region in the world with biosphere certification, awarded to entities that are committed to complying with the 17 United Nations Sustainable Development Goals and the Paris Agreement on Climate Change. This certification is a major objective of Turismo Centro de Portugal and very import-

Sector Insights: Portugal Hospitality & Leisure

ant steps are being taken toward this end, involving municipalities, companies, and associations from all over the territory that, by joining this project, are committing to implementing a set of good sustainability practices in the tourism offering. We believe that Centro de Portugal will effectively be recognized as the first sustainable tourist region in environmental, economic, and social terms. When growth is not sustainable, it has a negative impact on all areas. In the specific case of tourism, it is essential that its agents, together, understand that the activity can and should contribute to improve populations' quality of life. The Tourism Investment Support Center plays a crucial role in supporting investment and entrepreneurship. Can you elaborate on specific initiatives or projects aimed at fostering innovation and sustainable development within the hospitality and tourism sector in central Portugal?

Turismo Centro de Portugal has an investment support division that deals directly with over 25,000 tourism-related enterprises in the region, mostly SMEs, sharing information about investment opportunities, but also gathering information within the Sustainable Tourism Observatory, a project currently in development guided by UNWTO protocol and recently certified as a member of INSTO. This division is also responsible for the development of tourism entrepreneurship in the region, and enhances links between education institutions and enterprises. It organizes a competition for new tourism businesses (eight editions, with 378 business ideas presented) and a tourism-related academic thesis competition (7 editions), as well as an acceleration/open innovation program co-organized with 15 regional enterprise incubators (2 editions). As can be seen, fostering innovation and sustainable development is a major concern for us. In the ever-evolving landscape of tourism, what market trends does Turismo Centro de Portugal identify as particularly influential, and how does the organization plan to capitalize on these trends to further enhance the region's attractiveness for visitors and investors alike?

The new trends in tourist demand favor, among other factors, the diversification of the offer and it is on this trend that we are betting. Because of its characteristics, the center of Portugal cannot, and should not, be a destination with a single product, such as sun and beach, culture, or history. But it can, and should, show itself to the world as a destination that manages to combine various offers, including sun and beach, culture, and history, for sure, but also nature, active and sports tourism, gastronomic tourism, wines, traditions and popular festivals, and interaction with the local population, among many other attractions. More than a mass tourism destination, we want to establish ourselves as a high-quality niche tourism destination. We have all the conditions to be so, as has been recognized by the awards we have received and the growing number of visitors. The opening of new tourist facilities in less obvious locations, further away from the usual destinations, also proves that investors are aware of this reality. As the newly appointed President of Turismo Centro de Portugal, could you share your vision for the organization and highlight the main initiatives you aim to undertake during your mandate, particularly focusing on advancing the hospitality and tourism sector in the region?

I believe that this organization will only fulfill its mission if it brings together all the actors in the region directly or indirectly involved in tourism. That is why we intend to deepen our collaboration and connection with other public and private institutions. With this in mind, we intend to move forward with the creation of a Strategic Council for Turismo do Centro, which, as the name suggests, will have a consultative role in the strategies we want to implement, and which will bring together the main regional stakeholders in tourism. The continuous focus on improving the offer available to visitors, as well as the training, attraction, and retention of human resources, to mitigate the shortage of workers in the tourism sector, and the monitoring and evaluation of tourist activity, to help companies and decision makers to know the impact of their strategies, are other measures to which we will pay special attention. ✖

Sector Insights: Portugal Hospitality & Leisure

C O M M U N I Q U E : PA R Q U ES D E S I N T R A

GLORIOUS EDEN CARING FOR HERITAGE is a privilege, a re-

sponsibility, and a constant challenge, especially with regard to World Heritage Sites such as the Sintra Cultural Landscape, classified by UNESCO in 1995. Since its foundation in 2000, Parques de Sintra-Monte da Lua has successfully embraced this mission, researching, conserving, restoring, publicising, and ensuring the public enjoyment of the natural and built heritage it manages: the Park and Palace of Pena, the National Palaces of Sintra and Queluz, the Chalet of the Countess of Edla, the Moorish Castle, the Park and Palace of Monserrate, the Convent of the Capuchos, and the Portuguese School of Equestrian Art. This constant endeavour unites the more than 300 employees of this public company, committed to preserving this exceptional heritage that encompasses past, present, and future. In the current context characterised by climate change and the extremely serious threat it poses to the planet, natural and built heritage and biodiversity are at serious risk. As a consequence, it is our belief that passing on this legacy to future generations is only possible by adopting sustainable management and elevating it to a strategic vector. For this reason, Parques de Sintra, which has always conducted its activities in an ethical, socially and environmentally responsible manner, is deeply committed to evolving further on its journey towards sustainability and achieving its ESG goals.

Following its admission in 2022 to the Business Council for Sustainable Development (BCSD) Portugal, which brings together more than 170 leading companies in Portugal and helps them in their transition to sustainability, Parques de Sintra voluntarily signed up to the BCSD Portugal Charter of Principles, in which it commits to the United Nations Global Compact and the sustainable development goals set out in Agenda 2030. As an entity that manages UNESCO-listed world heritage, Parques de Sintra is keen to play an active role in this process, adopting fundamental sustainability principles and seeking to extend them to its value chain within the sphere of its influence, namely in terms of legal compliance and ethical conduct; human rights; labour rights; prevention, health and safety; the environment; and management. With regard to natural heritage, the company has also achieved important goals. In 2021, we obtained the International Forest Management Certificate from the Forest Stewardship Council (FSC®) for the entire 970ha of forest areas we manage. A completely voluntary process, forest certification attests to the adoption of good sustainable forest management practices from both an environmental and social point of view. This year we took another important step toward decarbonizing the economy, one of the Sustainable Development Goals

defined by the United Nations in Agenda 2030. In March, we were awarded the Ecosystem Services Certificate for the service of conserving carbon stocks, which confirms that the forest areas managed by Parques de Sintra retain more than 220,000 tons of carbon, preventing this from circulating in the atmosphere and thus contributing to air purification. This is an important service that these ecosystems provide to the community, with a positive impact on health, quality of life, the conservation of natural capital, and the promotion of biodiversity, which are fundamental to increasing the territory's resilience to the effects of climate change. These are important advances, but there is still a long way to go. That is why we remain focused on our objectives to promote decarbonization and energy transition, reducing the consumption of primary energy, water, and materials and ensuring sustainable forest management, boosting ecosystem services, and enhancing biodiversity. The Climate Emergency Plan, which Parques de Sintra began implementing this year and which runs until 2030, will be a key instrument in achieving these goals. It is based on five main objectives, includes activities to achieve them, and defines indicators that will be monitored every three years. Among the various actions envisaged in this plan, we are carrying out a study to quantify carbon emissions at Parques de

Sector Insights: Portugal Hospitality & Leisure

Sintra, to be finalized at the beginning of next year. The conclusions we reach will allow us to implement specific compensation measures at a later date. The work underway also naturally extends to the built heritage, which, in the parks and monuments managed by Parques de Sintra, stands in permanent dialogue with the natural heritage that surrounds it. This is reflected, for example, in the maintenance and heritage enhancement plans for the monuments in our care. By prioritizing the early detection and resolution of anomalies, we avoid the need for

more costly and intrusive interventions, which would have a greater impact on the heritage value of the building and would therefore be less sustainable. Also noteworthy in this context is the limitation and control of entrances to the National Palace of Pena, in force since 2021. While before the pandemic the monument recorded 12,000 entries per day, now the number of visitors cannot exceed 6,000. This measure reflects the company's clear strategic commitment to the sustainability of this important national monument, aiming to prevent wear and

tear on the palace and to avoid overloading the entire operation, improving the quality of visits. The transition to sustainability is as complex a process as is necessary. It is a path we are treading in the present with our eyes set on the future we want for this valuable and unique heritage that makes up the Cultural Landscape of Sintra. We have a responsibility to bequeath it to succeeding generations with the same charm that dazzled Camões, Garrett, Eça de Queirós, Beckford, and Lord Byron. We are working hard to preserve this "glorious Eden." ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

ON THE RIGHT PATH Be r n a r d o T r in d a d e P R E S I D E N T, ASSOCIAÇÃO DA HOTELARIA DE PORTUGAL (AHP)

AHP, Portugal’s hotels association, continues to provide leadership to the sector at a time of great growth and change. Considering Portugal's role as a leader in European economic growth driven by tourism, what key factors do you believe contributed to the sector's impressive recovery in 2022?

The year 2022 was indeed very good for the sector, with a significant recovery after two years of pandemic. We broke records in terms of tourist revenue. It was also the year in which we regained the trust of our customers and positioned ourselves as a destination in strategic markets, such as the American market. The fact that Portugal is a welcoming country, adept at hospitality, safe, and with a good quality/price ratio contributed to our rapid recovery. You mentioned the loss of a significant number of assets in the tourism sector during the pandemic. How is AHP working to address the labor shortage in the industry and improve the quality of service as it recovers?

The hotel sector, as we know, is a labor-intensive activity. Not being an exclusive issue in Portugal—it's a global concern—the truth is that in our country we have a situation of almost full employment. However, during the pandemic, we lost 45,000 assets in the tourism sector. Then, we recovered more quickly than expected in 2022, which also resulted in a lower service quality than expected. At this moment, all of us, throughout the tourism value chain, are working. Studies have pointed to leadership in salary growth in tourism when compared to the rest of the Portuguese economy. We are working on a new service delivery paradigm that provides different benefits to our employees. Still, a hotel is what we know. We are open 24 hours a day, 7 days a week, 365 days a year. The agreement with the CPLP to bring citizens from the Lusophone space to work in Portugal is an interesting initiative. Can you share more details about this program and its impact on the workforce in the hospitality sector?

For now, we don't have information about the results of this

agreement. However, I can tell you that bringing citizens from the Portuguese-speaking world to work in Portugal, with an unbureaucratic and simple process, is fundamental to attracting more foreign workers. We need to streamline procedures and have a green lane for immigration. However, what we feel is that these people arrive in Portugal, many of them with deficits in technical and linguistic training, so it is crucial to have full integration of these citizens into our country. Therefore, there must be a joint effort between companies, hotel schools, and the Institute for Employment and Vocational Training to fill these gaps. The Portuguese Hotels Association (AHP) has been requesting the Portuguese government create extraordinary housing support for displaced workers, precisely due to the shortage of human resources, but also because of the need for mobility in the hotel industry, as well as in other sectors such as agriculture, education, and health. With the ongoing uncertainties related to the war in Ukraine and global supply chain disruptions, how is AHP helping its members navigate these challenges and plan for a sustainable future?

First the war in Ukraine began and now the crisis in the Middle East. The current geopolitical situation brings a huge degree of uncertainty to the entire value chain of the tourism sector. Everything is more expensive, including labor, electricity and gas, food, and various services. And the outlook remains uncertain. The tourism and hospitality industry is well aware of the responsibility it has in the country's macroeconomic framework. We don't turn our backs on the challenges, but we also know that there are areas where we need to be helped. That's why the issue of housing concerns us. At the same time, we have the HOSPES Program, which aims to guide and commit each of AHP's hotels and partners to a common cause: promoting the sustainability of hotels and tourism while acting on three pillars: social, economic, and environmental. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

LEAN ON ME Cr is ti n a Siza V ie i r a CEO, ASSOCIAÇÃO DA HOTELARIA DE PORTUGAL (AHP)

AHP offers its members a wide range of benefits, aiming to use collective power to drive change in the right direction. AHP represents a diverse range of hotel units, including both large and small establishments. How does the association ensure that it caters to the unique needs and challenges of different types of hotels in Portugal, fostering innovation and collaboration within the industry and AHP's role in supporting its growth and resilience?

The mission of an employers' association—and the AHP has the responsibility of being the largest employers' association in the hotel industry in Portugal—is to be particularly attentive to the business conditions in which the hospitality industry operates. This means periodically listening to our members. We carry out surveys and consultations, getting to know the legal and regulatory framework, articulating common positions with the unions and regulatory and supervisory bodies, and with the banking and insurance sectors looking for partners and suppliers who can meet the needs of hoteliers. We also make the political authorities aware of any mismatches and inconsistencies in the interventions that are taken when there are different stakeholders in the decision-making and legislative processes. We are trying to find common ground where natural competition between operators can take place while respecting the rules of market access and competitiveness. This also means understanding international competition, European legislation, and being especially connected with tourism, including the air transport industry, distribution, entertainment, online operators and tour operators, cultural offerings, among others. AHP has a diverse membership, representing a significant portion of the hotel industry's contribution to the national economy. Could you tell us more about the benefits and resources that AHP offers to its associates, both large and small units, to support their growth and

competitiveness in the market?

AHP provides a set of benefits, including access to specific services and offices, legal and fiscal assistance, support for investors and entrepreneurs, studies on the hotel industry, training, dissemination of best practices, in-person events and webinars, periodic informative newsletters, and more. The association also actively collaborates with various public and private entities and is consulted in all legislative processes that impact the sector, providing support to entrepreneurs in all aspects that directly and indirectly affect their business. What strategies and initiatives do you envision implementing to enhance the digital performance and autonomy of AHP members in response to the evolving digital landscape and the importance of online communication and sales tools for the survival of hotels?

For quite some time, AHP has been supporting hotels in their journey to the digital realm. In 2018, we conducted a study that revealed around 30% of portuguese hotel units didn't have a booking engine and 7% didn't even have their own website. Subsequently, AHP began implementing a series of initiatives to empower hotels in the digital sphere. Among these initiatives is Click2Portugal, a tool that promotes direct booking at Portuguese hotels and currently has around 700 participants. In 2022, coinciding with the post-pandemic period, AHP established a digital office aimed at enhancing the digital performance and autonomy of its members. The presence of the hotel industry in the digital world, with mastery of new communication and online sales tools, is crucial for the prosperity of hotels. In addition to the work carried out "in-house," the association has several partners to help members adapt to the new times. ✖

Sector Insights: Portugal Hospitality & Leisure

COMMUNIQUE: THE LUMEN HOTEL

LET THE LIGHT IN THE LUMEN HOTEL is one of the newest and

most luxurious hotels in the city of Lisbon. Located in the city center of the city, it is the starting point for an unforgettable visit and the ideal place to stay during a business trip. The LUMEN Hotel honors the light of Lisbon in all its fullness. A unique light invades all areas of the hotel, creating a sense of comfort and peace in all contexts and moments of a guest's experience. Inaugurated

in 2021, this four-star superior is the first hotel to offer an immersive experience of light through a video mapping show that presents Lisbon to guests. The rooms, equipped with the latest technology, have extra-large beds (2.20x2) to provide guests with the greatest comfort, and are generously sized, in different types, suitable for individuals, couples, or families. The Clorofila restaurant, the Ora d'Oro

bar next to the rooftop pool (seasonally open), the Zénite Executive Lounge, the Fotossíntese outdoor patio, the gym, The Luz workstation (business center and coworking area), and the meeting and event rooms complete LUMEN's hotel offer. It is one of the newest hotels in the city, one of the best equipped, and the only one where light is explored in all its dimensions. The new light of Lisbon.

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

Enjoy an unmissable, immersive journey through the light and color of the city of Lisbon, without leaving the comfort of the LUMEN Hotel. Every day, the LUMEN Hotel's interior garden takes you on a must-see immersive experience of light and color, The

Lisbon Light Show—a show where you will get to know the whole history, culture, and charms of the inspiring city of Lisbon on a journey through the most important monuments, its gastronomy, its connection to the river Tejo, and all the places that make Lis-

bon the city it is today. This videomapping software also allows us to customize every single event that takes place at the hotel’s facilities—outstanding functionality that makes as much of a difference as our service quality. ✖

Sector Insights: Portugal Hospitality & Leisure

FOCUS: MICE TOURISM

WHERE EVENTS TAKE PLACE In 2022, Portugal held the seventh-most conferences in the world, while Lisbon was the second city with the most MICE events.

❱

TOURISM in Portugal is experiencing a moment of resurgence as the country gradually returns to levels close to pre-pandemic figures. Revenue generated by tourism was EUR 21.1 billion in 2022, up 15.4% from EUR 18.3 billion in 2019, according to the country's central bank, BDP. Meanwhile, 22.3 million tourists arrived in 2022, only 9.6% less than in 2019. But, of these, there were many who came to the country to participate in meetings, incentives, conferences, and exhibitions (MICE), an industry in which Portugal is a world leader. In 2022, Portugal held the seventh-most conferences globally, according to a report by the International Congress and Convention Association (ICCA). Thus, Portugal is placed in the top-ten for MICE tourism, alongside countries such as the US, Spain, and Italy. In Europe, the country was the sixth-largest organizer and host of conferences, according to ICCA data. We can see that the country is a world power in this industry, but in terms of cities, Lisbon was the second biggest host of MICE events in 2022, with a total of 144. First was Vienna, with 162, while third was Paris, with 134. Approximately 85% of the MICE meetings identified by ICCA were either fully face-to-face or hybrid, reflecting the gradual return to in-person events following the increase in online meetings in response to restrictions due to the COVID-19 pandemic. These results reflect the efforts made by the government in recent years to make Portugal one of Europe's leading tourist destinations, including MICE. In this regard, the government has seen a great opportunity in taking advantage of Portugal's geographical location as a gateway from Europe to the American continent. Lisbon has direct flights to some of the most important cities in the Americas, such as Sao Paulo and New York. At the same time, the Portuguese capital enjoys a varied air connection with the rest of the European capitals, which can be reached in just 1 to 4 hours. This privileged location between America and Europe is combined with Portugal's excellent quality of life. Lisbon and Porto, the country's two most economically important cities, boast top restaurants and high-quality business hotels at more competitive prices than in other parts of Europe. The country's gastronomy is among the most renowned in the world, as evidenced by the fact that there are 38 Michelin-starred restaurants throughout Portugal. Portugal's more-than 300 days of sunshine a year are another key asset for the development of MICE tourism in Portugal. In this regard, Porto and Lisbon stand out as two cities with an important industrial sector, in addition to a relevant leisure segment to complete the agenda of activities that accompany the events. In fact, in the ICCA report in which Lisbon is the second-best city in the world for MICE tourism events, Porto ranks sixteenth. However, other beach destinations within Portugal such as Madeira and the Algarve region have also gained popularity in recent years for their excellent climate

and gastronomic offer, especially the city of Faro for its golf courses and its good air connections with other European cities. One of the government's strategies has been the creation of economic incentives to attract MICE visitors through the Portugal Events program, managed by the organization Turismo de Portugal. This program allocates EUR5 million in direct economic assistance for both 2023 and 2024 for holding events, conferences, seminars, lectures, congresses, courses, and workshops. Under this program, each organizer can obtain an economic incentive of up to EUR250,000 provided that it invests a minimum of EUR100,000 in the event. Domestic or foreign companies with representation in Portugal, as well as convention centers, professional associations, and regional tourism promotion agencies are eligible for this program. These incentives are granted in the form of a direct allocation to finance events on Portuguese territory. One of the most important events in Portugal in 2022 was World Youth Day (WYD), when approximately 1 million Catholics from all over the world flocked to the country for a gathering at which Pope Francis participated. This religious event is very special, as the Catholic Church only organizes a WYD approximately every three years. The large movement of people during those days posed a challenge to Portugal's hotel network and its infrastructure for hosting events, challenges that the country overcame with ease. The mostr significant events on Portugal’s calendar include Portugal Tech Week, the BTL International Tourism Fair, the International Golf Travel Market, and the IHF World Hospital Congress, an event that changes venue annually and that in 2024 will take place in Rio de Janeiro. Lisbon has the most extensive infrastructure for holding MICE events. Focused on the trade fair sector, the city has venues such as the Feira Internacional de Lisboa, the Congress Center, and the Calouste Gulbenkian Foundation. For its part, Porto's main venue is Exponor, followed by the Alfandega Congress Center. Since most events tend to be concentrated in these two cities, the Portugal Events program offers an additional financial incentive to those organizing a conference or business meeting in one of the country's less densely populated regions. Tourism has become one of the cornerstones of the Portuguese economy. The country is approaching pre-COVID-19 visitor numbers, so with its excellent climate and popular gastronomy, it is well positioned to remain among the top-ten destinations for MICE tourism. It is currently the seventh country in the world with the most MICE events, but it would not be surprising to see Portugal in the top five in the next few years. So, if you are traveling to Portugal for business, you are sure to enjoy a memorable and profitable experience. ✖

Sector Insights: Portugal Hospitality & Leisure

Image: The Calouste Gulbenkian Museum in Lisbon

Sector Insights: Portugal Hospitality & Leisure

COMMUNIQUE: WINE & BOOKS HOTELS PORTO

THE NEW FIVE-STAR HAVEN IN THE HEART OF PORTO LOCATED IN the historic center of Porto, just steps away from the majestic Clérigos Tower, the newly opened Wine & Books Hotels Porto emerges as an authentic treasure that celebrates Portuguese culture and hospitality. This boutique hotel masterfully harmonizes modernity with the authenticity of a city rooted in centuries of history. It is an ode to the arts, gastronomy, wines, and Portuguese literature, set in a sophisticated and welcoming environment. The result of a EUR28-million investment by PBH Group, this five-star hotel spans a generous area of 5,600 square meters and is supported by a dedicated team of 70 professionals. Offering a diverse selection of accommodations, Wine & Books Hotels Porto features 70 rooms divided into eight unique room

types and three distinct categories: Superior, Deluxe, and Master. Each room provides guests with breathtaking panoramic views of the city, including the iconic Clérigos Tower. The hotel stands out not only for its privileged location, but also for its complete spa and gym, both meticulously designed to provide exceptional moments of relaxation and revitalization. The Charm of Wine & Books Hotels Porto: Art, Gastronomy, Sustainability, and Pet-Friendly Joana Saraiva, an administrator at PBH Group and trained architect, was responsible for the decoration of Wine & Books Hotels Porto, skillfully blending modern design with traditional touches. In the lobby, a deeply immersive atmosphere awaits guests, where shelves in varnished wood with ancient books and soft leather sofas

evoke the “Belle Époque” era. This ambiance of elegance and comfort extends to the rooms, designed with a neutral color palette and selected materials to ensure serenity and comfort. Beyond visual comfort, the hotel prides itself on its exceptional culinary offerings, led by Michelin-starred Italian chef Vittorio Colleoni. It includes a restaurant serving traditional Portuguese cuisine and an elegant Rooftop with panoramic views. The Wine & Books Café, inspired by early 20th-century European cafes, is a space that revitalizes the tradition of cultural gatherings, connecting the hotel to the local community. Wine & Books Hotels Porto firmly demonstrates its commitment to sustainability, with a design that prioritizes energy efficiency and eco-friendly amenities. This boutique hotel is also pet-friendly, provid-

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

ing accommodations and services specially prepared to welcome four-legged companions, ensuring that guests traveling with their pets feel well cared for. Celebrating Portuguese Culture—From Porto to Lisbon The Wine & Books Hotels insignia celebrates the essence of Portugal, providing experiences that reflect the authenticity of each city.

Wine & Books Hotels Lisboa, established near the Church of the Memory, already exemplified the brand's commitment to enhancing the national cultural and gastronomic heritage. Now, with the opening of Wine & Books Hotels Porto, the chain extends its passion for Portuguese culture, offering a five-star haven that celebrates the rich legacy of Porto. ✖

Rua de José Falcão 39-41 4050-526 Porto +351 222 443 750 info@porto.wbh.pt

Sector Insights: Portugal Hospitality & Leisure

Image: Martin Schuetz

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

FAIR GAME D á l ia Pa l ma FA I R M A N A G E R , BTL-BOLSA TURISMO DE LISBOA

Lisbon Travel Market will take place February 28-March 3, 2024, in Lisbon. The event has become a must for anyone who’s anyone in the Portuguese hospitality sector. How has Lisbon Travel Market evolved over the years and what role does it play in promoting Portugal's tourism and hotel offer on a global scale?

Throughout its 33 editions, Lisbon Travel Market (BTL) has been a world showcase for Portugal as a destination. Born with the ambition of boosting the sector, the fair has broadened its relevance, adapting to the fluctuations and demands of the world tourism market. Today, BTL is more than a showcase for national and international destinations; it is a strategic forum for sector discussions and global partnerships, a faithful reflection of the national tourist offering. Thanks to our powerful Hosted Buyers program, in 2023, and with the strategic collaboration of TAP Portugal and Turismo de Portugal, we succeeded in attracting decision-makers from 25 global source markets, holding more than 2,000 crucial meetings for the sector. But more than the numbers, which are already impressive, the entire national tourism trade involved recognized the quality of the contacts that were made. That's why our aim for the 2024 edition of BTL is to continue along the path of quality hosted

buyers. BTL is a reflection of the tourism sector in terms of trends and innovations. Each edition mirrors the evolution of both the tourist offer, with new segments, and the solutions that promote the business’ digitalization, in conjunction with the pillar of sustainability. BTL is the driving force behind, and promoter of, the trends to be adopted by the tourism industry. What will the fair offer in its 34th edition? What developments and attractions can visitors and participants expect?

The 34th edition of BTL will continue to impress with the diversification and innovation on offer. In this edition, we will be focusing on the digital transition of tourism businesses, wine tourism, culture, and LGBTI+ tourism, which was very successfully launched during the previous edition. One of the new features of BTL 2024 is religious tourism, as a specialized segment. Our aim is to continue to offer a multitude of experiences that provide added value to our exhibitors and visitors, with a focus on quality and the results we bring to the market. ✖

Sector Insights: Portugal Hospitality & Leisure

C O M M U N I Q U E : W E AT

THE UNIFYING POWER OF FOOD WEAT, nestled in the vibrant heart of Lis-

bon's city center and graced by the scenic views of the nearby river, stands as a beacon of innovation and creativity in the realm of corporate team building and skills development. This unique space is not just about culinary experiences; it's a hub where the art of cooking intertwines with the art of corporate excellence. At its core, WEAT is deeply rooted in the philosophy of sustainable gastronomy. This commitment goes beyond the kitchen, reflecting a broader dedication to environmental responsibility and ethical sourcing. By championing the traditional Mediterranean diet, WEAT brings to the table a plethora of fresh, healthful ingredients, primarily focusing on a rich variety of vegetables. These ingredients are not just chosen for their flavors but are carefully sourced from local suppliers and partners who share WEAT's unwavering commitment to sustainability. This approach ensures that every culinary creation is not only delectable but also ethically and responsibly crafted. WEAT's activities are meticulously designed to mirror the dynamics of the corporate world. The kitchen becomes more than a place for culinary endeavors; it transforms into a microcosm of a corporate environment. Here, each individual assumes a role,

takes on responsibilities, and contributes to a collective goal. The need for coordination and collaboration is paramount, closely mirroring the intricate workings of a successful business. Corporate teams engaging in WEAT's activities find themselves immersed in scenarios that demand and develop essential workplace skills. Communication becomes key as team members navigate through recipes, delegate tasks, and synchronize their efforts. Leadership skills are honed as participants step up to guide their teams through culinary challenges. Problem-solving skills are put to the test as teams encounter and overcome the inevitable hiccups that arise in any kitchen, much like in any business project. Moreover, WEAT's environment fosters creativity and innovation. As teams experiment with recipes, blend flavors, and explore culinary techniques, they unlock new ways of thinking and approaching challenges—skills that are invaluable in the corporate world. The act of cooking together, sharing ideas, and ultimately enjoying the fruits of their labor, also serves as a powerful team bonding experience, enhancing morale and strengthening relationships within the team. In addition to building these practical

skills, WEAT's focus on sustainable gastronomy imparts important lessons in environmental stewardship. Teams learn about sustainable practices, from sourcing ingredients to minimizing waste, and are encouraged to incorporate these principles into their corporate ethos. The events developed at WEAT can broadly be categorized into 3 main groups: TEAM BONDING THROUGH COOKING

Events that offer a relaxed and enjoyable environment where team members can learn about various cuisines, such as Italian, Asian, Mexican, or Portuguese, and bond over the cooking experience. The process of cooking and dining together strengthens team relationships and fosters a sense of community. TEAM CHALLENGES FOR SKILL ENHANCEMENT

Activities like the "Pressure Test" challenge participants to complete culinary tasks within a set timeframe. This not only enhances skills such as time management, creativity, and precision in cooking but also encourages teamwork and effective communication. WEAT also developed methodologies to work on other subjects, such as change management, creativity and inno-

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

vation, or building trust. CHARITY EVENTS: COOKING FOR A CAUSE

These events combine culinary activities with social responsibility. Teams cook complete meals for donation, which not only fosters team spirit but also serves a noble purpose: providing food for those in need. Such activities underscore the value of community contribution and elevate the team's morale and sense of purpose. Additionally, they offer an opportunity to practice key corporate skills. Concluding the event, the team gathers to enjoy a well-deserved meal, celebrating their collective achievement. In short, the main benefits of the activities developed at WEAT are: ENHANCING COMMUNICATION AND COLLABORATION

tering a sense of innovation and creativity. This can translate into new ideas and approaches in the workplace. IMPROVES PROBLEM-SOLVING SKILLS

Cooking can present unexpected challenges, such as missing ingredients or time constraints. Teams must quickly adapt and find solutions, enhancing their problem-solving skills and adaptability. BUILDS TRUST AND MORALE

Working together in a relaxed, non-work environment helps build trust among team members. Sharing a meal that they’ve collectively prepared can boost team morale and create both a sense of belonging and accomplishment. PROMOTES TIME MANAGEMENT AND ORGANIZATION

Cooking requires clear communication and coordination. Team members must work together, assign tasks, and ensure that everyone is on the same page. This improves overall communication skills and collaboration within the team.

Cooking activities often have time limits, requiring teams to efficiently manage their time and resources. This can improve organizational skills and the ability to work under pressure.

FOSTERS CREATIVITY AND INNOVATION

STRENGTHENS RELATIONSHIPS

Cooking is an inherently creative process. Team members are encouraged to experiment with ingredients and recipes, fos-

Sharing the experience of cooking and eating together can strengthen interpersonal relationships. It allows team members to

interact in a more casual setting, which can lead to stronger bonds. WEAT's approach to team building is unique in that it not only develops essential team skills such as leadership, coordination, communication, and change management but also instills values of sustainability and social responsibility. It's a place where culinary arts and corporate training converge, creating experiences that are as enriching and fulfilling as they are educational and developmental. WEAT, therefore, stands as a unique and innovative solution for corporates seeking to develop their teams' skills and performance in a dynamic, enjoyable, and meaningful way. Why not try it while getting to know, of course, a bit more about the Portuguese culture through its gastronomy? ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

ALL TOGETHER NOW F e r n a n d o Ga r r id o P R E S I D E N T, ASSOCIAÇÃO DOS DIRECTORES DE HOTÉIS DE PORTUGAL (ADHP)

ADHP helps to steer and steady the local hotels sector, and holds events and awards ceremonies that bring figures from across the industry together. Can you tell us about the role and mission of ADHP and how it has evolved over the years, especially in its 50th anniversary year?

ADHP has played a fundamental role in the tourism and hotel sectors, one that has evolved over its 50-year history. Initially, the association was established to support hotel managers in their work, and to sell their units and regions, while at the same time promoting the sharing of knowledge between them. However, our mission has evolved over time, and today our focus is broader. That said, the foundation will always aim to support and promote the development of the hotel management profession. Today, ADHP provides specialized training developed by industry professionals, which grants valued certification valid for companies within the framework of legal training hours. We also organize events such as our annual Congress and promote the acknowledgement of professional excellence in the sector. We influence academic curricula to ensure that they are aligned with the dynamic demands of the market. And finally, we actively participate in making decisions that shape the future of the hotel industry. Could you share some highlights from the ADHP Congress and the Xénios Awards?

The ADHP Congress and the Xénios Awards have become significant moments on the tourism agenda and are a testament to the importance of our association to the sector. The congress was conceived as a mainly technical meeting for hotel professionals

and aims to create a space for the exchange of knowledge and experience that enables the development of the profession and the monitoring of new trends. The ADHP Congresses bring together professionals, companies, academia, and public and private institutions in a dynamic of close dialogue and celebration of hospitality that is not restricted to the technical arena. Collaboration with universities is particularly important because it allows us to promote the sharing of up-to-date knowledge, fostering a solid learning environment. What factors do you think have contributed to the event becoming such a significant calendar event?

The high number of participants, at around 700 at the last edition, at our congress reflects the industry's strong recognition of ADHP as an active and representative player in the tourism sector. Several factors have contributed to this recognition. Our continuous defense of the importance of qualified professionals and their indispensable role in the industry has been a way of bringing people together from different parts of the country in the name of developing the profession. Our leadership in offering certified training tailored to the needs of industry professionals has also been an important factor in this recognition. And, of course, it is important to highlight the work we have done, together with the relevant authorities and other sector players, to build a labor market that benefits hotel managers and hospitality professionals.

Sector Insights: Portugal Hospitality & Leisure

Portugal's hospitality sector has seen growth and development. What are some key trends and challenges that the sector is currently facing, and how is ADHP working to address them?

Portugal's hotel industry has witnessed remarkable growth and development, which does not come without its own specific challenges. One of the trends and, at the same time, challenges we are seeing is the expansion of international companies and brands, which is increasing the demand for more specialized professionals. Within this framework, ADHP has acted mainly along two lines: providing specialized training for existing professionals based on the most up-to-date know-how on the market in order to improve their technical skills; and influencing the curriculum of educational programs in hospitality schools to ensure that they are aligned with the constantly evolving requirements of the market. The Xénios awards recognize and reward professionals in the sector. Can you elaborate on the significance of these awards and their impact on the industry? Are there any plans for their future expansion or evolution?

ADHP was the first association to recognize and reward tourism professionals. If there is one success factor that is absolutely central to our industry, it is the people. That's why there's an eagerness to see the excellence of our professionals recognized and this has been reflected in the uptake of the awards, which has already exceeded 100,000 votes. The structure of the Xénios Awards is also important in the way professionals perceive their relevance.

We involve both professionals, who have a constant and close knowledge of their peers, and notable people from the industry who have exceptional expertise. To this extent, there is first a selection phase for the finalists, which is based on a public vote, and then there is a final assessment by a multidisciplinary jury that elects the winners. In the future, we plan to expand these awards to recognize promising future professionals, including students. Looking ahead to the future, what are the key goals and initiatives that ADHP has in mind to further support and enhance the hospitality sector in Portugal?

In 2023 we mark 50 years of history. There is no ADHP without a vision of the future, which has been our compass for continuous evolution, but there is also no ADHP without respect for the past. Our mission of representing and defending professionals has been a constant in our history, while at the same time we have made a permanent effort to identify and address the market's new challenges. ADHP's vision for the future centers on several key objectives and initiatives. We want to improve the benefits offered to our member professionals; we will seek to establish partnerships with internationally recognized hospitality schools to raise the quality of training in Portugal, with ADHP actively participating in the certification process, and we wish to continue advocating for the recognition of the profession through legal frameworks that emphasize professional training and experience, thus promoting greater professionalization within the sector. ✖

Sector Insights: Portugal Hospitality & Leisure

COMMUNIQUE: THE HISTORIC VILL AGES OF PORTUGAL

ENGINES FOR CHANGE THE HISTORIC VILLAGES OF PORTUGAL,

created in 2007, is a non-profit, private association that includes public and private entities and focuses on the local development of the Historic Villages of Portugal network, which includes Almeida, Belmonte, Castelo Mendo, Castelo Novo, Castelo Rodrigo, Idanha-a-Velha, Linhares da Beira, Marialva, Monsanto, Piódão, Sortelha, and Trancoso. The 12 Historic Villages of Portugal are located in the central interior of Portugal, near of the border with Spain, spread over 10 municipalities. In its early years, the association focused its efforts on the promotion of a territory that was intended to be positioned as a qualified cultural destination, with heritage assuming importance as an active agent in this process

of transformation of 12 historic villages full of history and stories in an effort to achieve the status of international destination. The goal to promote tourism development has been achieved; however, we didn't want to be just one more destination with a distinctive culture and natural heritage. That's why, in 2016, we decided to combine tourism, innovation, and sustainability. We designed a strategy focused on the assumptions that we have since then maintained as a trajectory, integrating in this process public and private entities and the community of each historic village, along with other bodies of relevant importance in the embodiment of the strategy, which, through the creation of strategic thematic working groups, we

implemented until 2020, then adjusted for the 2030 horizon based on goals that aim to contribute to the fulfillment of the UN’s 17 Sustainable Development Goals. Within this framework of action, we created a methodological monitoring framework that integrates reference indicators and specific indicators of a territorial nature and aligned with the strategy of the Historic Villages of Portugal network. 2030 GOALS

a. The classification of the Historical Villages of Portugal Nnetwork as a National Monument and candidacy for World Heritage Site. b. Reduction in CO2 emissions by up to 45%.

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

The path designed to achieve these goals first included an agreement signed between all public partners, including the municipalities that are part of the Historic Villages of Portugal network), where carbon neutrality is assumed as a goal. This process also included the association's integration into the Covenant of Mayors initiative as a support entity and the municipalities as signatories, thus confirming our commitment and desire to make a difference. The next decade is of paramount importance for the Historic Villages of Portugal network in consolidating its position in the field of sustainable development. We aim to see the Historic Villages of Portugal network adapt to climate change, thus contributing to the implementation of the European Eco-

logical Pact, guided by the principles of social, digital, and green transition, without forgetting the demographic challenge. There are several short- and medium-term projects that aim to contribute to the embodiment of the vision for the Historical Villages of Portugal network, and it is on these that we will focus our attention to achieve our goals and guarantee long-term sustainable development, creating space for the diversification of the economy through the capitalization of endogenous resources. SMART SPECIALIZATION DOMAINS

a. Sustainable Tourism b. Cultural and Creative Industries c. Sustainable Agriculture/Biodiversity d. Sustainable Construction/Renovation

We have also identified different axes of action ranging from mobility to basic infrastructure, also considering two areas designated as facilitators: technology and training. The work already developed within this paradigm has received the attention of different organizations at national and regional levels. The Historical Villages of Portugal network has been recognized several times as an example of good practice, including by the WTO itself. The association, as the entity responsible for managing the network and the brand, is pleased with the results achieved, having no doubt that sustainable development is the only path that can guarantee our heritage is preserved as a resource for generating growth and socioeconomic development. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

PROMOTING TOURISM Gon ç a l o R e b e l o d e Al m ei d a CEO, VILA GALÉ HOTELS

Vila Galé promotes local gastronomy and culture while restoring unused historic properties and focusing on innovation. To what do you attribute Portugal’s role as tourism powerhouse, and how has Vila Galé accompanied and contributed to this status?

For some time now, Portugal has been one of the most sought-after tourist destinations in Europe, winning a number of international awards and gaining tremendous recognition from travelers. I think this is due to various factors, such as the warmth and friendliness of the people, the quality of the gastronomy, the cultural diversity, the immense historical heritage that can be discovered, the beaches, the sun and sea and the nautical activities, the golf courses, and nature tourism as well as safety, the climate, the quality of the hotels, and good accessibility. At Vila Galé, we try to ensure that our offer enhances all these aspects. So, we try to have hotels in great and diverse locations in historical areas, many of which are classified as World Heritage by UNESCO, such as Porto, Évora, Coimbra, or Elvas. We also strongly promote gastronomy, as we also produce wines and olive oils: Santa Vitória, from the Alentejo, and Val Moreira, from the Douro. In the hotels’ restaurants, we try to favor local products and the most traditional dishes. And we disseminate various aspects of culture, as we focus heavily on themed hotels. For instance, we have a hotel dedicated to poetry, Vila Galé Collection Palácio dos Arcos, where all the rooms and common areas have poems by Portuguese-speaking writers. Vila Galé Collection Braga reveals the city’s history. Vila Galé Collection Elvas highlights the Portuguese fortifications scattered around the world and Vila Galé Serra da Estrela is dedicated to mountain myths and legends. We are keen to integrate our hotels with local communities and heritage. This also involves restoring historic properties that were unused and falling into disrepair. What is the importance of innovation for Vila Galé, and why has the strategy of combining agrotourism, gastronomy and hospitality has been so successful?

Innovation is one of Vila Galé’s strategic pillars and a constant in-

vestment in all business aspects. Regarding the management of internal processes, we have been developing tools to accelerate digitalization and dematerialize procedures using the internet and mobile devices, for example, in the areas of housekeeping, room cleaning, or building maintenance. We have also implemented the paper-free policy whereby we seek to reduce to a maximum the use of paper both among teams and in contact with customers and suppliers. With this in mind, we created the My Vila Galé platform, completely online, where we provide clients with access to various services such as checking in, viewing restaurant and bar menus, booking reservations, and checking the spa menus. By focusing on innovation and technology, we achieve efficiency and productivity gains. In addition to procedures, we naturally also seek to be innovative in the products and services we offer our clients. And that involves combining gastronomy, agrotourism, and hospitality. What impact can be achieved with projects that anchor themselves to historical sites - such as Paço do Curutêlo, São Miguel and Santa Iria Convent?

In Viana do Castelo, near Ponte de Lima, we will renovate Paço do Curutêlo and promote a wine tourism project connected to Vinho Verde wine production. In addition to a hotel with over 80 rooms, it will feature swimming pools, an events hall, restaurants, spa, library, wine cellar, and a connection to the local history in the form of a museum center. Both this project and the ones in the Azores and Tomar are the result of the recovery of historic buildings. Following this strategy brings advantages at all levels. It allows us to have totally unique and non-copyable units, we manage to keep alive the history and traditions that give authenticity to each destination, we contribute to preserving the intangible and built heritage; however, we also offer different experiences to our clients, who can stay in special places. And we give new uses to venues that were unused, thereby generating more employment. ✖

Sector Insights: Portugal Hospitality & Leisure

INFOGRAPHIC: HOTELS

TIME TO CHECK IN

HOTEL CHAINS IN PORTUGAL BY CLASSIFICATION

A range of hotels cater to visitors of all types.

Portugal's hotel industry is booming thanks to a strong national tourism promotion campaign, steady investment, and a range of incentives.

SOURCE: REAL CAPITAL ANALYTICS

BIGGEST HOTEL INVESTORS (2022, EUR MN) Anti-Airbnb legislation, as well as other tourism sector incentives, could boost investment over 2024.

SOURCE: REAL CAPITAL ANALYTICS

300

250

200

BUDGET & ECONOMY 33%

150

MIDSCALE 22% UPSCALE & UPPER UPSCALE 27%

100

LUXURY 8%

BED OCCUPANCY RATE OF HOTELS AND SIMILAR ESTABLISHMENTS IN PORTUGAL (%)

Azora

The government is keen to expand hotel capacity, especially in the interior, in order to encourage year-round tourism, thus boosting occupancy rates. 39.5

2013

39.7

43.6

2015

2018

47.8

2019

47.3

2021 2022

SOURCE: IBISWORLD

48.9

2017

2020

Portugal continues to lead Europe on post COVID-19 recovery

46.4

2016

Sofinac

HOTELS INDUSTRY REVENUE GROWTH VS. EUROPE, % ANNUAL CHANGE

42.4

2014

Square Asset

TOP INTERNATIONAL HOTEL INVESTORS BY COUNTRY

SOURCE: STATISTA

2012

Henderson Pestana Park Group

60 40 20

24.1

31.1 45.7

’15

’16

’17

'18

'19

'20

'21

-20 -40 -60

PORTUGAL

'22

'23

'24

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

UNITED IN LIGHT Al e xa n d r e M a r to Pe r e i ra CEO, UNITED HOTELS OF PORTUGAL

United Hotels of Portugal represents 10 unique hotels across Portugal and has keen insight into the modern consumer. Can you discuss the current market trends in the Portuguese hospitality and leisure sector and how United Hotels of Portugal is adapting?

The hotel industry in Portugal was, until a few years ago, extremely fragmented, consisting mainly of small, independent, and often family-run establishments. Over the past two decades, two phenomena have emerged, both on the rise: on one hand, there has been a growing interest from international investors eager to enter this sector, and on the other hand they have brought with them more international brands and operators. The traditional concept of owning an asset and operating it in all its facets is disappearing. Independent units are seeking solutions, whether by handing over operations or by simply finding partnerships. The United Hotels of Portugal is an organization owned by hoteliers that primarily manages the commercial function of hotels while maintaining full autonomy in their management. This allows hotels to escape the inevitable standardization of brands and instead focus on their unique service personality. I would say that the United Hotels of Portugal is one of the responses to the paradigm shift in hotel management in Portugal. Maintaining individuality is a focus for United Hotels of Portugal. How does this balance with the need for a cohesive brand image, and how does it contribute to overall success?

Today's consumer seeks authentic experiences and hotels, steering clear of replicas. Establishing strong brands that are repeated across hundreds of hotels poses the risk of diluting the personality of each hotel and the unique character of its location. The tourism industry runs the risk of becoming a patchwork of global brands pretending to be authentic. Our brand is primar-

ily intended for the trade; we allow each hotel to convey its own identity individually, managing their own brand. Today, with the internet and social media, this is not difficult. The isolated yet genuine hotel, equipped with the right marketing and distribution tools, is more powerful than ever. With diverse hotels like Lumen Hotel & The Lisbon Light Show and Fátima Hotels Group, how does the company approach marketing for different target audiences and locations?

We never use the brands in combination, except in our dealings with the professional trade. Lumen is a singular, extraordinary hotel with its own distinct culture and innovative, urban sense. The Fatima Hotels Group gathers hotels in a location with magnificent international exposure for specific catholic countries. Lastly, we also have Óbidos—a medieval village renowned in Portugal, where we have a small, beautiful boutique hotel. We will never communicate the various brands collectively to the public; each of the 10 hotels is unique. What are United Hotels of Portugal's mid to long-term ambitions, and how will industry evolution influence the company's strategies?

We believe in growing by embracing more independent and authentic hotels that want to join us, while also seeking investment opportunities with our partners. We do this through a strong investment in technology and internationalization. Above all, we uphold three pillars in our approach: ethics, professionalism, and personality. Some of these concepts are reflected in the new “ESG” acronym, but they have been integral to our DNA from the beginning.

Sector Insights: Portugal Hospitality & Leisure

Regarding the recent expansion into Óbidos in 2023, what's the vision for growth, and what initiatives are planned for enhancing customer satisfaction across the portfolio?

How does Fátima Hotels Group capitalize on religious tourism, and how does it balance serving pilgrims while meeting the expectations of tourists seeking diverse experiences?

Óbidos is one of the most beautiful medieval villages in the world, and despite being highly visited, it still doesn't record many overnight stays in hotels. In fact, it will always be this way because the protection of that urban area will never allow the construction of large hotels. Spending a night near the city walls is something magical yet largely unexplored and uncommunicated. With our sales force, we intend to boost the sales of this hotel—and we are already achieving this with great success.

Spirituality is inherent to human nature. While many may deny religious affiliation with any denomination, few deny an inner sense of seeking, a need of a spiritual well-being that is connected to being human. This quest for modern spirituality takes often place in sanctuaries like Fatima, where each visitor is shielded by a cloak of anonymity and individuality in the crowd, allowing them to safely take steps at their own pace and in their chosen direction. The overnight stay figures in Fátima attest to this. This year will surpass, certainly, the numbers from 2019, and the internationalization dimension of the destination makes Fátima Portugal's foremost destination without access to the sea. Today experts say the consumer is looking for new experiences. I would say that spirituality is one of the most important experiences a person can undertake.

Lumen Hotel & The Lisbon Light Show offers a unique experience. How does this concept align with United Hotels of Portugal's approach to differentiation and guest engagement in Lisbon's competitive market?

The Lumen Hotel & The Lisbon Light Show is, above all, a tribute to what is most genuine in Lisbon. What we consider to be most authentic is the light. The light of Lisbon is unique because it emanates from the river, the sea, the atmosphere, and from an urban architecture that seems to have been designed by generations to embrace that light. We have added to this homage to something ancient a modern video mapping—an immersive experience of light and sound that you won't find in any other hotel in the world. Furthermore, we infused all this innovation with Portuguese essence, evident in a myriad of details: in the building materials, decor, textiles, amenities, and in the menus of the restaurant and bars. The Lumen Hotel will always be one of the finest hotels in its segment in Lisbon, basically because it has a strong personality.

Considering current trends, how is United Hotels of Portugal leveraging its brand and resources to adapt to emerging challenges, especially in the context of global travel dynamics and changing consumer preferences?

We believe we understand the world we operate in and comprehend the new consumer. Our focus in designing the Lumen Hotel, an innovative, environmentally conscious, lean luxury hotel, is our best calling card. We don't expect to replicate the hotel because that would deny who we are. However, we aim to replicate the respect we have for understanding an ever-dynamic market. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

SEE IT, BELIEVE IT M a r g a r id a Al me i d a FOUNDER & CEO, AMAZING EVOLUTION

Amazing Evolution is always a step ahead and is deftly guiding the hotels under its umbrella to greater things. Can you share the key principles that have guided Amazing Evolution's success in becoming Europe's leading boutique hotel operator and hotel management company in 2023?

I believe that the key principles guiding Amazing Evolution's success in becoming Europe's leading boutique hotel operator and hotel management company by 2023 revolve around our commitment to uniqueness and authenticity. As an independent hotel management company, we have dedicated ourselves to creating projects that truly reflect the essence of their location, history, and culture. This commitment translates into the development of honest projects that consistently meet and even exceed our clients' expectations. In today's increasingly discerning market, clients appreciate and value the authenticity that we strive to promote. At Amazing Evolution, we possess a diverse and highly skilled in-house team that includes architects, engineers, marketers, economists, managers, salespeople, graphic designers, journalists, and more. Whenever we embark on a new project, our team comes together to comprehensively analyze all aspects of the project. We do so while always respecting the unique characteristics of each individual project, ensuring that we create exceptional experiences that are tailored to the specific context. Given the unique challenges faced since Amazing Evolution's inception, how has the company's distinctive approach and positive outlook influenced its ability to achieve unusual goals in the hotel industry?

Considering the unique challenges that Amazing Evolution has

encountered since its inception, our company's distinctive approach and unwavering positive outlook have played a pivotal role in our ability to achieve remarkable goals within the hotel industry. Our success can be attributed to our steadfast commitment to respecting and tailoring our approach to each project in order to create substantive and differentiating identities. We recognize that a project on Avenida da Liberdade requires a different strategy than one on Largo do Intendente, even though both are located in Lisbon. The distinct characteristics of each location significantly influence the experience we can offer to vastly different target audiences. The COVID-19 era presented unprecedented challenges to the hotel industry. Despite these challenges, Amazing Evolution managed to keep all our hotels operational, with the exception of one with unique circumstances. This was possible because we have meticulously defined the target audience for each project, ensuring that each has its own brand and identity. Rather than imposing a uniform approach, we prioritize and accentuate the uniqueness of each project. It is through this approach that we have been able to accomplish extraordinary goals. As a company dedicated to hospitality that is creating a paradigm shift, how does Amazing Evolution balance reinforce the positive aspects of each project while anticipating and facing the challenges of a constantly evolving industry?

As an independent hospitality company committed to spearheading a paradigm shift, Amazing Evolution places a strong

Sector Insights: Portugal Hospitality & Leisure

emphasis on striking a balance between enhancing the positive aspects of each project and proactively addressing the challenges inherent in a constantly evolving industry. Our mission revolves around the relentless pursuit of doing more and doing it better and in a distinctive way. We firmly believe that tomorrow can always be an improvement on today, and we continuously challenge ourselves. Reflection has an important role in our approach. Our firm focus remains on the well-being of our guests, as we continually seek to craft distinct and enriching experiences for them each day. There is goldsmithing and then there is filigree. We dedicate ourselves to this meticulous and detailed work to create difference and value. To achieve this objective, we understand the necessity of remaining vigilant for new ideas and fresh content. This proactive stance ensures that we are perpetually prepared to meet the evolving needs and desires of our clients, who are constantly seeking novel and exciting experiences and new ways of experiencing life, and this is an intense and permanent challenge that keeps us vigilant and as if we are living the future in anticipation. With more than 20 hotels and projects in its portfolio, how does Amazing Evolution maintain its proactive stance to meet challenges and deepen its knowledge of the industry while ensuring a personalized, hands-on approach to each project?

Amazing Evolution maintains a proactive stance and deepens its knowledge of the hospitality industry through a combination of team expertise, investment in research, collaboration

with strategic partners, adoption of innovative technologies, and constant feedback from clients and guests, all while offering continuous training to our team to ensure that they are up to date with the best hospitality management practices. These practices allow us to offer a personalized and practical approach to each project, ensuring the success and satisfaction of our clients and guests. Another important characteristic of an Amazing Evolution approach is curiosity and permanent doubt. They drive us incessantly in the search of answers. Other answers. Winning two tourism "Oscars" at the World Travel Awards in 2023 is a remarkable achievement. How does this recognition impact Amazing Evolution's vision for the future and how do you see the company continuing to set new standards in luxury lifestyle services in the property sector?

Receiving two tourism “Oscars” in 2023 is undoubtedly a remarkable achievement and a validation of our commitment to excellence in the hotel management industry in Portugal. This recognition is a testament to the hard work and dedication of the entire Amazing Evolution team. As for our vision for the future, we see this recognition as a stimulus to continue raising standards in luxury lifestyle services in the property sector. We see it as an opportunity to expand our property portfolio. We are always looking for new opportunities to create unique and memorable experiences in exclusive locations. We will also continue to collaborate with renowned strategic partners to strengthen our position in the market and look for growth opportunities. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

GROWING DEMAND M i g ue l Ve l e z FOUNDER & CEO, UNLOCK HOTELS

Unlock Hotels supports a range of boutique hotels as well as operating the Soft brand at locations across Portugal. Unlock Hotels operates in the ever-evolving hospitality industry. From your perspective, what are the most notable trends or shifts currently shaping the sector and how does Unlock Hotels stay ahead in this dynamic environment?

The hotel industry has evolved a lot in recent years, and not only because of technological developments that have simplified many processes. The main change in my opinion has been in the behavior of consumers who are looking for unique and differentiating experiences. Before the pandemic, there was already a demand for smaller hotels in more remote locations, which has become more evident in recent years. This experience goes far beyond a hotel to sleep in; they are looking for a more personalized service and tailor-made experiences. And that's what we've been working toward at Unlock Hotels, offering the best service and the best experience in each destination where we are present. Sustainability and responsible tourism are gaining importance globally. Can you share how Unlock Hotels incorporates sustainable practices into its operations and how this aligns with market demand for eco-friendly accommodation?

We have always seen the business from a perspective of the future, which is why sustainability is at the center of our strategy. Since the beginning of Unlock Boutique Hotels we have always prioritized sustainability in the units we manage and, in 2022, we were the first hotel chain company to have all its hotels awarded Biosphere Sustainability Certification by the Responsible Tourism Institute (RTI). Unlock Boutique Hotels' certification represents our contribution, but it also means and represent that we will do more and better as a group. In practical cases, we have implemented digital solutions for our services, such as the virtual concierge service and invoicing process to reduce paper use, removal of single-use plastic bottles from hotel bathrooms, and raising customer awareness about the reuse of towels. Unlock Hotels has a unique approach to boutique hotels. Could you provide some insights into the company's origin story and the philosophy that underpins your selection of hotel properties?

Unlock was created with the aim of satisfying a need that we recognize in the market, namely the management of boutique hotels. A small hotel can't support the costs of a team with expertise in marketing, sales, revenue management, finance, and operations. Also, there is a need for professional management of investments by companies whose core business is not hospitality but want to be present in the sector, or have succession problems, where the next generation don't want to continue with their parents' business and someone has to manage the unit. Unlock was an umbrella brand represented in many regions of Portugal by hotel members, but each hotel maintains its own brand. This was the business philosophy until the beginning of this year, when we managed 18 hotels in

10 destinations under the Soft brand and full management model. After seven years we opened capital for Portugal Ventures, which allowed us to extend the business model to include hotel rentals, and we have now integrated a new hotel into this model: Jardins do Porto Boutique Guest House in Porto. We are very careful when selecting hotels. We choose boutique hotels, only four or five stars, that provide a unique and differentiating experience for the client in each of the regions where we are present. Many guests today seek authentic and immersive experiences. Can you highlight a few properties from Unlock Hotels' portfolio that exemplify this approach and how they cater to the desires of modern travelers?

Our hotels are selected according to defined criteria and standards. Our portfolio of hotels offers a different types of experience that can be enjoyed in Portugal, which despite being a small country has a lot to discover. Historical, nature, gastronomic, wine, and wellbeing experiences stand out. They are genuine examples of exclusivity and authenticity in each region where we are present. Unlock Hotels has seen significant growth in recent years. What can we expect in terms of future expansion plans?

Currently we manage 19 hotels in 11 destinations under the Soft brand and full management models. With the entry of Portugal Ventures, the new rental model, and the restructuring of the team with senior staff who are very experienced in hotel management, the aim is to have eight more hotels in this new model in the next five to seven years and maintain the other models. We will be launching a superb service for very small hotels at the end of the year and they will be able to join Unlock Boutique Hotels almost immediately. It is a game changer for this segment of the market. With new technologies and digital platforms transforming the way guests book and experience hotels, how does Unlock Hotels leverage innovation to enhance guest satisfaction and streamline operations?

Since the beginning, digital presence has been a top priority. We know the importance of digitalizing the offer and direct bookings, and the diversity of online marketplaces, as well as the quality of online information, is increasingly a factor in customer purchasing decisions. We've always tried to keep up with trends, especially in innovation and technology, where we have today, for example, a chatbot integrated into hotel websites that allows us to automate and reply to customers on different channels, a virtual shop for purchasing vouchers, a system for sending automated emails to customers, and a virtual concierge to consult all the information about the units via QR code. And we're now finishing implementing the automation of sending online invoices to guests. What we want is to correspond to the needs of the market and the expectations of our guests. ✖

Sector Insights: Portugal Hospitality & Leisure

Source: Penha Longa

Sector Insights: Portugal Hospitality & Leisure

COMMUNIQUE: ACROSS PORTUGAL

TRAVEL INDEPENDENTLY WITH CHARM: A BUSINESS PEOPLE TO PEOPLE OVER THE YEARS, Portugal has experienced an exponential surge in popularity among travelers, firmly establishing itself as a top destination for wanderlust enthusiasts. This charming European nation, nestled on the Iberian Peninsula, has found its place on most people's travel bucket lists, and for good reason. Portugal's appeal is multifaceted, ranging from its rich history and vibrant culture to its delectable gastronomy and world-renowned wines, not to mention its picturesque coastline and pristine beaches. This fascination with Portugal is not merely a passing trend; it is deeply rooted in the nation's ever-evolving tourism sector, offering immense growth potential for the future. Additionally, the safety and warmth exuded by the Portuguese people play a pivotal role in attracting tourists from all corners of the globe. ACROSS PORTUGAL: SETTING THE STANDARD AMONGST AGENCIES

At Across Portugal, our unwavering commitment to redefining the modern landscape of tourism and transforming travelers' perceptions of tourism companies is evident through our tireless dedication. As a specialized destination management company, we craft tailor-made journeys, encompassing accommodation, ground transportation, and a curated selection of premium experiences for independent travelers, couples, and small groups seeking an elevated Portuguese adventure. Our approach is rooted

in the development of profound, enduring connections with each traveler—from the initial planning stages, throughout the journey, and even after they return home. We firmly believe that the quintessence, the context, and the realization of each travel experience are the fundamental elements for creating an unforgettable trip. Our team is truly committed in delivering the very best to all our travelers, which is why our dedicated team stands by them every step of the way, from their initial contact until they safely return home. We take immense pride in the frequent commendation of our exceptional customer service, where our team maintains daily communication with each traveler, ensuring their journey proceeds seamlessly and reminding them of every detail in their itinerary for the following day. This personalized, human touch may be time-consuming, but we wholeheartedly believe it's an investment well spent. While technology is an integral part of modern travel, we firmly hold that preserving the human and compassionate aspect of our service is equally essential. Ultimately, tourism is a connection between people, and while technology has its place, maintaining the human and sensitive element is indispensable to our process. We find it incredibly rewarding that many of our travelers wish to have our team accompany them on future adventures, and this is underscored by our recognition through the Trip Advisor Travel —a testament to the trust and

satisfaction our travelers place in us. ELEVATING YOUR SUCCESS: THE VALUE OF HIGH-QUALITY BUSINESS PARTNERS

Whenever we seek to acquire new experiences, we strive to arrange for our team to interact with potential partners and personally partake in the planned activities, just as our travelers would. Based on these assessments, we will then decide whether to include their offerings in our repertoire. It is of utmost importance to feature only those experiences offered by partners whom we have personally acquainted with. This is the sole way to truly comprehend the nature of the experiences we provide to our travelers. Familiarization trips are consistently vital for boosting team morale and motivation. Up until now, the feedback has been exceptionally positive, and we are committed to maintaining this methodology. This approach not only strengthens team unity but also enhances local knowledge. NAVIGATING ONLINE BOOKING CHALLENGES: OVERCOMING TRAVELERS' HURDLES

The primary challenge travelers often encounter when booking online with an international company as one related to trust. Travelers have a fundamental need to feel confident that they are engaging with trustworthy, honest, and genuine individuals. In the early stages, it was not uncommon for travelers to request various forms

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

of evidence of the company's legitimacy, especially when considering premium experiences. The uncertainty of dealing with an unfamiliar entity presented a significant hurdle. Over time, we are delighted to have overcome this challenge, thanks to the increasing number of positive reviews on platforms like TripAdvisor due to the quality of the experience we provide. Winning the TripAdvisor Travel Award has been a pivotal achievement in dispelling doubts. Another obstacle relates to the perceived value versus cost. Our services stand out from mass tourism and generic offerings worldwide because we tailor each experience to individual travelers. People are still adjusting to this concept and, until now, have found it challenging to attribute value to our services without first-hand experience. Although they grasp the theoretical concept of the unique experience awaiting them, the novelty or vagueness sometimes makes it difficult for them to gauge whether the overall experience justifies the cost. Travelers often compare our offerings to traditional travel agency services, but our approach is fundamentally distinct. We are a local friend in Portugal who is always there to assist in case of any unforeseen circumstances. Travelers won't have to navigate call centers or various departments when facing challenges; their dedicated travel specialist is their primary point of

contact. Our approach is highly personalized, human-centric, and requires meticulous planning to ensure a seamless experience. This is what sets us apart and what makes our services unique. FIVEFOLD REVENUE SURGE IN ONE YEAR: BOOSTING YOUR EARNINGS

Rather than solely striving for growth and achieving specific targets, our primary focus is on delivering high-quality service. We firmly believe that outstanding results naturally follow consistent effort. From day one, we've been fully dedicated to enhancing our customer service and exceeding the highest traveler expectations. This commitment has led to significant word-of-mouth promotion, which has proven to be our most effective form of marketing. Concurrently, we make every effort to create optimal conditions for everyone on our team. If this approach proves successful, we're confident that our company will be in capable hands, and this will translate to a positive experience for our travelers. In summary, growth is an inherent outcome of the principles and values that guide our interactions with our team, partners, and travelers. To date, we're fortunate to have the best alongside us, just as our travelers rightly deserve. The project has been under the joint leadership of both managing partners,

Pedro Luís and João Branco, from its inception. Their dynamic and enthusiastic backgrounds have allowed them to develop expertise in hotel management, travel agencies, DMC's, private airlines, and events. Considering these factors, they strongly believed that the post-COVID era was the ideal moment to launch this innovative and youthful project. ✖

MEET OUR LEADING PARTNERS PEDRO LUÍS AND JOÃO BRANCO

The project has been under the leadership of both managing partners, Pedro Luís and João Branco, from its inception. Their vibrant and passionate backgrounds have enabled them to gain expertise in various sectors within the tourism industry. Both hold degrees in Tourism and Tourism Management, and they currently reside in the Lisbon district. Their professional journeys have been remarkably alike, marked by accomplishments and fresh achievements.

CONTACT ACROSS PORTUGAL

www.acrossportugal.com info@acrossportugal.com

Sector Insights: Portugal Hospitality & Leisure

F O C U S : S U S TA I N A B I L I T Y

AN ESG TWIST Portugal’s tourism firms are aiming to increase their operational efficiency through environmentally friendly initiatives and diversify their offerings.

❱

SUSTAINABILITY AND ENVIRONMENTAL AWARENESS have be-

come inescapable in all areas of life and business. Environmental, social, and corporate governance (ESG) is now a widely known term in all walks of life, including the leisure sector. As a result, more and more hotels and countries, such as Portugal, are becoming aware of the importance of including sustainability and respect for the environment in their offerings, as this is something that more and more customers value. Incorporating sustainability strategies in tourism is now a necessity, and in Portugal the industry is working to differentiate its market as one that upholds ESG criteria to increase its positioning as a sophisticated market for European tourists. “The Portuguese resort and residential tourism landscape is undergoing a profound transformation, influenced by a confluence of diverse market trends. Sustainable tourism is gaining momentum, with discerning travelers gravitating toward eco-conscious accommodations that mirror their environmental values,” said Pedro Fontainhas, Managing Director at the Associação Portuguesa de Resorts (APR), in a recent interview. According to a survey conducted by Virtuoso, a network of luxury travel advisors, 82% say the COVID-19 pandemic has made them want to travel more responsibly, while 70% say traveling sustainably enhances their vacation experience. These are trends that Portugal, with a significant luxury tourism industry, is paying more

attention to in order to become one of Europe's leaders in sustainable tourism. “The Association is gearing up to make eco-friendly resort developments and sustainable tourism practices not just an option, but a norm. The goal is clear: position Portugal’s residential tourism sector as a vanguard in green initiatives,” Fontainhas concluded. This context in which customers are increasingly taking ESG criteria into account is forcing tourism industry players to include sustainability as an integral part of their business. “Sustainability and environmental awareness have become indispensable aspects of success for any hotel. While there are numerous areas within a hotel where we can enhance sustainability and adopt eco-friendly practices, the crucial first step is to embark on the journey toward this eco-conscious ecosystem,” says Mariano Faz, CEO of Ace Hospitality Management. For hotels to implement sustainable strategies, one of the keys is that these practices are economically viable and generate efficiencies. Therefore, for Ace Hospitality, Faz defends the importance of encouraging all departments to integrate a sustainable mentality in their day to day to begin to integrate this structure within the organization. Thus, a simple measure to begin to spread a sustainable culture is to implement strategies to save water and electricity consumption, which can represent significant savings for companies. “Sustainability is at the center of our strategy,” said Miguel Velez,

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

founder and CEO of Unlock Hotels. “Since the beginning of Unlock Boutique Hotels, we have always prioritized sustainability in the units we manage and, in 2022, we were the first hotel chain company to have all its hotels awarded Biosphere Sustainability Certification by the Responsible Tourism Institute,” Velez added. Examples of sustainability measures the company has implemented include a virtual concierge service and check-in process to reduce paper usage, eliminating single-use plastic bottles from the hotel's bathrooms, and making guests aware of the importance of reusing towels to save energy. The efforts of Unlock Boutique Hotels to advance the sustainability of its operations are significant, but it is not the only player driving this strategy in the industry. This demand to lower the environmental impact of hotels is occurring at the sector level, and leading real estate services firms are dramatically expanding their ESG consulting services in response. “We have guidance and concern with sustainability issues, not only in day-to-day operations, but we also have a team dedicated to providing services related to ESG practices, with relevant experience in supporting hotel units in obtaining of its certificates and the adoption of sustainable practices,” said Karina Simões, head of Hotel Advisory at JLL Portugal, in an interview. The tourism industry is one of the pillars of the Portuguese economy, so it is essential that companies keep pace with sector trends.

This industry has grown significantly in recent years, from 7.5 million tourists in 2012 to around 22 million in 2022, which is influencing the diversification of the country’s tourism offer. In this sense, Portugal has focused on developing a broad tourism portfolio in which you can find everything from business travel to health services, wellness, and sports such as golf. All of this, however, results in higher traffic in areas of natural beauty. With this in mind, the government agency Turismo de Portugal launched a sustainable tourism program for 2020-2023 that outlines a roadmap of actions to be taken by the sector to protect the environment and nature. The 2020-2023 sustainable tourism program includes 119 actions to promote ESG criteria within the country's tourism offering. This roadmap is an important part of the broader Tourism Strategy 2027, which seeks to promote tourism in all regions of Portugal and improve water management in the sector's activities, among other objectives. Thus, the 2020-2023 sustainability program includes actions such as instructing tourism operators on the importance of reducing single-use plastics, combating food waste, and increasing the use of electric vehicles. With these roadmaps developed by the government, together with the efforts being made by companies to expand the efficiency of operations, Portugal is on its way to becoming a leader in sustainable tourism in Southern Europe.. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

UP CLOSE & PERSONAL F e r mí n Ca r mo n a CEO, H O T E LV E R S E

Hotelverse is a unique platform allowing travelers to explore digital twins of hotels and facilities before booking and is keen to grow its business in Portugal. Can you elaborate on Hotelverse's decision to expand into the Portuguese market? What opportunities or challenges did you identify in the hospitality sector that motivated this move?

Hotelverse is committed to expanding globally and the Portuguese market is a key part of that growth. As is happening in other countries, Portugal is attracting a growing number of savvy travelers who are not only looking for information about their stays on intermediary channels and third-party booking sites, but are also exploring the hotels' direct booking channels. Our mission at Hotelverse is to present hotels in a comprehensive way, captivating guests to make the decision to book through the direct channel, seeing it as the easiest one. Although Portugal has some excellent luxury hotels and destinations, the country still registers a relatively low percentage of sales through the hotels’ own websites, around 17%. In other markets this percentage already reaches 30% and, in some cases, surprisingly exceeds 50%. So, you can see that the challenge of promoting the direct channel for hotel bookings is proving increasingly competitive. The factor that has become crucial to boost revenues is providing a personalized experience, whether virtual or not, and so we are determined to help Portuguese hotels overcome this current challenge and maximize their direct sales, thus contributing to the success of their operations. As Hotelverse establishes a presence in Portugal, what specific market trends within the country's hospitality sector are you closely monitoring and how do you plan to align your technology to meet the evolving needs of the Portuguese market?

We are, of course, constantly monitoring market trends and how the hospitality sector develops in Portugal, and we have a team that closely works in this market. I’d say the three main aspects we can highlight at the moment are AI developments, mobile technology, and personalization, which are all things users have been coming to look for more and more over the past few years. Firstly, integrating AI in the hospitality sector is a must, as it is in probably every other sector right now. The hospitality sector can take advantage of increasingly using AI in areas like chatbots for guest inquiries, AI-driven recommendations for services, and analytics for demand forecasting. We are constantly updating ourselves on how AI is being used to look for new ways to integrate it into our solutions as well, and to provide the best tailor-made solutions for our clients. Then, we can’t disregard the growing role of mobile technology in travel activities. Mobile devices are increasingly being used for booking, check-ins, and accessing hotel services, as they’re the easiest, fastest and most convenient way to access everything when you’re traveling. Thinking about the end user, we look for ways to make our solutions as convenient as possible because our aim is precisely to facilitate direct bookings and improve the booking experience for guests. Last, but not at all least, personalization is a hot trend in the hospitality sector, and AI and mobile technology can also play pivotal roles in delivering personalized experiences. Data analytics, guest preferences, and behavior tracking are all ways to leverage this factor, and guests are definitely more attracted by personalized booking experiences that can stand out from the rest—that’s what we aim to do for our clients. We don’t want to only fit in perfectly in the

Sector Insights: Portugal Hospitality & Leisure

Portuguese market; We want to, above all, set a new standard for advanced solutions that elevate the guest experience and boost revenue growth for our hotel partners. With Tivoli Carvoeiro Algarve Resort as a client, can you share insights into the collaboration and development of the digital twin for this establishment? How does Hotelverse tailor its solutions to meet the unique requirements of different clients?

Creating a digital twin of an entire building is not an easy task. It involves a large team of specialists, including a specialized team of 3D artists who help replicate all the architecture and design of the buildings and the resort in detail. In the case of Tivoli Carvoeiro Algarve Resort, the biggest challenge our teams came across with was the recreation of the terrain surrounding the hotel and on which the building is set. This hotel is set on a cliff, something we hadn’t come across yet, and so we had to develop a solution specifically for this project. To get around this challenge, we used a point cloud technique in order to achieve the final product at its best quality. This is just an example of many possible ways in which we try to accommodate our clients’ needs and figure out how to help them every time through technology, creativity, and effort. How does Hotelverse differentiate itself from competitors in the Portuguese market, and what strategies do you employ to stay ahead in the rapidly evolving hospitality technology sector?

To this day, we believe we have no competition. We are unique and we are the only company with a real promise on developing

accurate room booking. Furthermore, we are in a new, inexistent category; we haven’t come to replace any existing company. We’re a fairly recent company that identified a very troubling issue in the market and created a solution to overcome it. We bring a new solution to the table that looks to improve the booking experience for customers and improve direct sales for hotels. Therefore, we complement any existing solutions focused on direct sales for hotels and aim to disintermediate booking processes. Given Hotelverse's recent success in fundraising, what are the upcoming milestones and future plans for the company in Portugal and how will the anticipated Series A round contribute to the growth and innovation of Hotelverse in the coming years?

Our biggest aim at the moment is to open up the Portuguese market, bringing this solution and technology closer and making it more accessible to Portuguese hoteliers, especially given the volume of tourists visiting Portugal every year and the presence some of the biggest hotel chains have here. For years now, Portugal’s tourism office has been conducting an excellent campaign to promote the country as a destination for travelers, and Hotelverse looks to complement this success by improving the booking experience for tourists and contribute towards the success of the country. As for the Series A round of investment, it will help certainly contribute to our expansion to other regions such as Mediterranean Europe, APAC, and the US. Not only this, but this next round of investment will help us sustain a constant improvement and keep evolving our technology as market trends and demands fluctuate. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

THE NEED TO KNOW Ka r i n a Simõe s H E A D O F H O T E L A D V I S O R Y, JLL PORTUGAL

JLL Portugal is moving into valuations, strategic consultancy, and operator searches via its hotel advisory arm, looking to take advantage of a booming hospitality sector. As the Head of Hotel Advisory at JLL, could you describe your primary responsibilities and how your team contributes to the success of clients in the hospitality and leisure sector?

My primary responsibility is to develop the hotel business at JLL Portugal. With the increase in the hospitality business in Portugal beginning 10 years ago, and at that time without local support at JLL for this area, was decided to establish a local team to work with the broader JLL Hotels & Hospitality team. We have been in the market for eight years and have a successful story to tell. In this team, apart from being responsible for the transactional side of trading hotels, we have three additional service lines specialized in hospitality, namely valuations, strategic consultancy, and operator search. With this range of services, we can support investors in developing their hospitality businesses in Portugal, from the initial stage until operation. What are the key factors that drive investment and development decisions in the Portuguese hospitality market?

Economic and social stability, good weather, safety, and affordability are all important. In addition to these aspects, we also have the fact that at this stage we are a must-see destination and consequently a place where brands and investors are willing to have or reinforce their position. Our role is to find the best solutions for our clients by understanding their development/expansion strategies and combining that with our market expertise and knowledge of opportunities. In the realm of hotel advisory, what innovative strategies or services has JLL implemented to stay ahead in a competitive market, and how have they impacted your clients and their properties?

Even though JLL's core business is real estate brokerage, as previously mentioned, at Hotel Advisory we provide support to our clients in other areas, such as valuations, strategic consul-

tancy, and operator searches, which allows us, together with other JLL departments, to offer a 360-degree service to our clients. Sustainability and responsible tourism have become essential considerations for the industry. How does JLL incorporate these principles into its advisory services and support clients in achieving their sustainability goals?

At JLL, we have guidance on sustainability issues, not only in day-to-day operations, but we also have a team dedicated to providing services related to ESG practices, with relevant experience in supporting hotel units in obtaining certificates and adopting sustainable practices. Can you share some recent success stories or notable projects where JLL's Hotel Advisory has played a pivotal role in optimizing the performance and value of hospitality assets in Portugal?

Each mandate is analyzed and prepared to go to market so that we can maximize the value of the asset for our client. However, we want investors to look at our assets and be our clients tomorrow, so this preparation must be done from a fair market value perspective so that both entities—seller and buyer— make a good deal. Looking ahead, what do you foresee as the most significant opportunities and challenges for JLL's Hotel Advisory team in Portugal, and how are you preparing to address them?

Portugal is at this stage an attractive destination to invest in all asset classes, and more specifically in terms of hotels. I would say that this trend, which is expected to continue, is our greatest opportunity. As far as challenges are concerned, the biggest is undoubtedly the lack of product, which does not correspond to the dynamics occurring on the demand side. ✖

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

COMMUNIQUE: WOW PORTO

THE PLACE TO BE Ad r i a n Br id g e CEO, F L A D G AT E P A R T N E R S H I P - W O W

THE VISION OF WOW is to bring a totally new set of cultural con-

cepts to Porto for people who live in the city and for returning visitors to the area. The consistent theme throughout the project is excellence, sustainability, and entertainment. We currently have seven museum experiences, shops, restaurants, a wine school that is WSET certified, and multiple cafés and bars. The project came about in 2008 when The Fladgate Partnership—The umbrella company that includes Taylor’s Port and several other companies, including WOW—decided to relocate its bottling away from its traditional riverside home. This decision freed up a number of warehouses on the south bank of the River Douro and left us with a large area in Vila Nova de Gaia and the opportunity to do something with a lasting effect for Porto. The first phase was to build The Yeatman Hotel, a luxury wine hotel that opened in 2010, with the second phase being the opening of WOW. The Fladgate Partnership determined that WOW would open in July 2020, and we first broke ground in January 2018, leaving just two and a half years to bring the whole complex together. There were various changes to the project as it was underway, for example The Chocolate Story was added whilst crews had started digging as we had been looking to add chocolate to WOW. There was a belief that the market was changing and the market for high-quality, cocoa-rich chocolate was increasing. The Chocolate Story was then moved to the old croft bottling building to give it the space that it needed. Central to the process was the need to dig down 17 metres to create a new ground level that was considerably deeper than the

existing one. Perhaps the most interesting stage of this part of the construction process was the underpinning of the largest warehouse, which was propped up while the ground around and under it was dug out to create the new floors required for the project. This presented the engineers with a series of challenges, not least of which was the poor weather and high winds that tested construction to the very limit. The warehouse also held during the small earthquake that struck Porto in September 2018. Once complete, the old warehouse was left supported on stilts that suspended it in the air. There were also practical reasons to dig down—we would block the spectacular Porto views if we solely built upwards. These views have been perfectly preserved and can be seen throughout WOW and especially on our main terrace. WOW opened on time in July 2020 and dark, dingy warehouses that had been crying out for a new use had either disappeared or been transformed into airy, well-lit expanses of space that are welcoming to visitors. We are constantly innovating the space and adding new museums, exhibitions, and restaurants. This year, we have opened a new museum, The Atkinson Museum, which will house an exhibition in collaboration with The Tate Collection called ‘’The Dynamic Eye: Beyond Optical and Kinetic Art.” We have also changed the concept of one of our restaurants to be focussed on luxury laidback dining from Chef Ricardo Costa, who has two Michelin stars at his restaurant at The Yeatman just a few steps away. Mira Mira by Ricardo celebrates small producers and has two tasting menus, one of which is completely vegetarian. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

EYE IN THE SKY Gon ç a l o G a r c i a H E A D O F H O S P I TA L I T Y P O R T U G A L , C U S H M A N & WA K E F I E L D

Cushman & Wakefield has its finger on the pulse of Portuguese hospitality real estate and is helping to guide the sector to greater things. Could you share your insights into the current state of the hospitality sector in Portugal and any notable trends you've observed recently?

Tourism has been benefiting from consistent communication and a clear vision of what tourism should be and what benefits it should bring to the country from both public authorities and private companies. The results are self-evident and tourism has developed visibility in terms of size, quality, and diversification. Activity has more than doubled since 2010. Tourism activity has also fully recovered post COVID-19 and is performing above 2019 KPIs, mostly driven by ADR growth. The country’s natural ability to provide leisure and corporate tourism has been working in favor of the sector’s recovery. The increasing demand for resort-type products and authentic experiences is fully satisfied by the country’s products and infrastructure. Portugal has become increasingly popular as a tourist destination. How is the country positioning itself to attract both domestic and international investors in the hospitality sector, and what factors make Portugal an attractive market for such investments?

Since the early 2000s the tourism authorities have been consistently and progressively attempting to position Portuguese tourism on a higher standard when compared to the popular tour operator destinations. This has been achieved by supply qualification, either by supporting new supply or renovating the existing supply with strong tax and capital incentives to promote investment. In the end, any positioning strategy or communication effort wouldn’t be effective if the delivered product can’t stand up to expectations. And in that area, Portuguese tourism resources are highly appealing. The value proposition that a country has to offer is in fact very worthy in comparison to alternative destinations. Sustainability and eco-consciousness are becoming vital in the hospitality industry. How are sustainability practices and green initiatives influencing investment decisions and development projects in Portugal's hospitality sector?

ESG policies are no longer a “nice thing” to have in companies. It’s a reality that is impacting the sector and we do see efforts from the players to accommodate and comply with it. We see it

happening as per a rational motivation, making sure that projects are up to date and compliant with requirements that other market stakeholders are imposing, namely ability to access credit or benefiting from tax incentives. Cushman & Wakefield conducted a survey with 40 pan European investors and hotel operators. Interesting conclusions were taken from it, in particular the notion of liquidity of assets. There was a willingness to pay premiums up to 4-7% higher on assets that were ESG compliant. Operator selection plays a critical role in the success of hospitality ventures. What criteria and factors do you consider when advising clients on selecting the right operators for their properties, and how does this contribute to the overall success of a project?

The right concept with the right project is critical for the longterm success that is expected from a hospitality venture. We see operator selection as a tailoring activity, making sure the “suit” fits the object and purpose of the venture. Having consolidated relationships with the major hotel operators its also critical to guide the process smoothly to completion, and assuring adaptations and concessions that both parties must accommodate to achieve the desired result. Whether there is a management, franchise, or lease agreement in place, the relationship is long term and it’s critical that both parties are comfortable and fully aware of the principles of the venture. Given your expertise, can you provide examples of recent hospitality investment or development projects in Portugal that have showcased innovative approaches or strategies, and what lessons can be learned from these experiences?

Every project has different hurdles, and it’s extremely challenging to summarize in one or two. Comporta can be presented as an example of persistence and belief in how a destination is created. As result we witness investors aligning their objectives toward Lisbon, Porto, the Algarve, and Comporta. WOW in Vila Nova de Gaia - Porto is another example that represents the effort of private companies to enhance the value experience when visiting Porto, creating conditions to extend the average length stay and therefore increase the revenues generated. ✖

Sector Insights: Portugal Hospitality & Leisure

C O M M U N I Q U E : PA L Á C I O L U D O V I C E W I N E H O T E L

WINE & REST PALÁCIO LUDOVICE WINE HOTEL is located

in the heart of Lisbon amidst the mythical Chiado, Bairro Alto, and Príncipe Real neighborhoods, facing the breathtaking panoramic views of the São Pedro de Alcântara Viewpoint and the emblematic Glória Tram. A former private residence of João Federico Ludovice, also known as Johann Friedrich Ludwig, a German architect that moved to Portugal to work for the King in the 18th century, the palace became a building of interest after having survived the 1755 Lisbon Great

Earthquake due to an innovative construction technique that was later used for the reconstruction of the entire city. After profound reconstruction work took place under the eye of the architect Miguel Câncio Martins, the ultimate luxury boutique hotel experience in the city was brought to life in 2022. The hotel features 61 sumptuous rooms and suites, an iconic gastronomic experience at FEDERICO restaurant, delightful wine tastings at the bar, the Port Wine Institute shop, and luxurious vinothérapie treatments

at CAUDALIE Boutique-Spa. The courtyard at Palácio Ludovice is the perfect place for food and wine lovers, with a selection of over 120 portuguese wines, daily wine tastings, and wine pairing dinners available. When at the bar you shouldn’t miss the signature cocktails list, a selection of the best in mixology where wine will be somehow always present. The private rooms are ideal for small board meetings or simply an exclusive lunch or dinner gathering. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

EVOLVING EXPERIENCES Mariano Faz CEO, A C E H O S P I TA L I T Y M A N A G E M E N T

Ace Hospitality Management’s innovative business model revolves around franchising its hotels with renowned international brands, and it has earned recognition as a prominent partner in the Portuguese market. Given your extensive experience in the hospitality industry, how do you envision the future of the sector and what strategies is Ace Hospitality Management implementing to adapt to changing market dynamics?

The hospitality sector in Portugal is currently experiencing significant growth and is emerging as one of the most sophisticated markets in Europe. This transformation is particularly notable due to the increasing presence of international brands in the industry. Providing excellent service has become a baseline expectation, and guests now anticipate hotels to serve as hubs for unique and diverse experiences. In light of these developments, AHM’s primary focus will revolve around developing those experiences while we are dedicating our efforts to optimizing pricing strategies. Food and beverage is also becoming a pivotal aspect within the organization when delivering experiences and profitability. Ace Hospitality Management offers a range of services from asset management to revenue management. Can you share some innovative approaches or success stories in these areas that have significantly benefited your hotel owners and partners?

In all our properties, we consistently deliver strong performance, often achieving higher ADRs than our competitors. Ace Hospitality Management distinguishes itself by partnering with worldclass hotel brands. Our innovative business model revolves around franchising all our hotels with renowned international brands, and we have earned recognition as a prominent partner in the Portuguese market. We leverage our robust network and distribution to optimize the guest experience. Furthermore, our extensive local knowledge complements this partnership, resulting in outstanding outcomes. Moreover, each of our hotels is imbued with unique narratives that are carefully crafted from the

inception of the floor plans. Our journey begins with identifying our target client and then strategically aligning all aspects of the property to cater their specific needs, often collaborating with brands that can deliver our ambitions. This contrasts with other operators who tend to force their brands into unsuitable locations, whereas we prioritize a guest-asset-centric approach over a branding one. In essence, our key differentiators in the competitive hospitality landscape are the ability to excel in optimizing a range of channels and resources while adapting our properties to tell distinct stories that resonate with our clients through a clever design, operational excellence and food & beverage experiences leading to high guest reviews scorings as we are seeing across all our properties. With an impressive portfolio of hotels, including Casa Da Companhia and Renaissance Porto Lapa Hotel, what factors do you believe are responsible for Ace Hospitality Management’s ability to consistently achieve exceptional outcomes in various types of hotels and locations?

AHM stands apart from other brands due to a unique blend of factors. Our distinctiveness stems from our comprehensive hotel asset management approach, our flexibility in handling the relationships with various brands, and our commitment to optimizing their platforms. We also stand out because we continuously review and refine the performance of our assets. For instance, our approach sets us apart as we adopt an owner´s mindset, ensuring that we prioritize the best interests of both owners and assets. We maintain complete brand neutrality, striving to identify the most valuable brand for each specific asset. However, our commitment doesn’t end there. We consistently seek out opportunities for ROI in every decision that the company takes, enabling us to closely monitor the outcomes of each action. This necessitates rigorous

Sector Insights: Portugal Hospitality & Leisure

attention to detail and requires our team to possess a high level of sophistication, capable not only of calculating and analyzing, but also of executing the nuances of every move toward enhanced performance. Furthermore, we emphasize the optimization of brand deliverables in our partnerships. While this may seem fundamental, maintaining a steady relationship and identifying areas where we can deliver impactful results are crucial tasks that can lead to double-digit increases in results. Lastly, our unwavering focus on continuous improvement and innovation is paramount. The hotel industry operates round the clock, making it easy to lose ground against the competition. We always bear in mind that when it comes to pricing, the potential for growth is limitless. With this mindset, the AHM team remains relentlessly committed to the idea that today’s achievements should only serve as a foundation for tomorrow´s successes. This constant drive for excellence has yielded remarkable results, as seen with properties like Casa da Companhia and Renaissance, both of which have become top performers not only in their locations but also within their respective brands. Sustainability and eco-consciousness are becoming increasingly important in the hospitality industry. How is Ace Hospitality Management incorporating sustainability practices into its operations, and what are the potential benefits for both the environment and the business?

Sustainability and environmental awareness have become indispensable aspects of success for any hotel. While there are numerous areas within a hotel where we can enhance sustainability and adopt eco-friendly practices, the crucial first step is to embark on the journey toward this eco-conscious ecosystem. At AHM, we understand that this is a path that requires the alignment of all departments. It’s not solely about cost savings in electricity and

water, though these are undeniably important aspects. It also involves fostering a mindset shift among our associates to integrate sustainable practices into their daily routines. The advantages of implementing such policies extend significantly to all stakeholders. While prioritizing environmental consciousness, the ROI for implementing certain policies typically exceeds double digits. In today’s resource-constrained investment landscape, discovering such high yields makes it well worthwhile to invest in and focus on initiatives where people and resources are perfectly synchronized. In the realm of marketing and sales, what emerging trends or technologies do you believe will have the most significant impact on attracting and retaining guests? How is Ace Hospitality Management staying ahead of the curve in this regard?

The constant challenge lies in gaining control over distribution channels and obtaining insights into your end consumer to offer potential solutions. Each year, we witness new trends disrupting the market, with hotels being at the forefront of this transformation. We observe the emergence of new AI tools, chatbots, robust CRS, augmented reality, virtual reality, comprehensive CRM systems, streamlined mobile check-in processes, and various incentives for direct bookings. For AHM, our primary focus isn’t so much on developing these guest touchpoints from scratch. Instead, our emphasis is on maximizing the utility of these tools and deploying them where they generate the highest ROI, ultimately delivering more value to our guests. This is how we remain at the forefront of industry developments. We view technology as an additional team member, and our key objective is to ensure that we harness its full potential to assist all hotels in optimizing their results. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

LET US SHOW YOU An a Cr i s ti n a Be a tr i z CEO, A B C S U S TA I N A B L E L U X U R Y H O S P I TA L I T Y

ABC Sustainable Luxury Hospitality is a renowned consultancy that is helping hotels across Portugal meet their potential. ABC Hospitality is described as a platform of restless talent with creative and logical minds deeply passionate about professional hospitality. Can you elaborate on how this unique blend of skills and passion sets ABC Hospitality apart in the industry, and how it benefits your clients?

ABC Hospitality contributes to developing unique, differentiating, innovative, profitable, and well-positioned projects. At the heart of this work is a multidisciplinary team of talented people with over 15 years of experience in the various expertise crucial to any hotel's success. We believe that the wellness and healing segment is the basis for a change in mindset that leads to genuinely sustainable businesses and lives. Our team members are role models in terms of personal development and bring a genuinely differentiating element to our projects and greater efficiency and coherence in their materialization. We impact the business and personal lives of investors, owners, team members, and guests. In this way, ABC Hospitality achieves the higher purpose of awakening and continuing the importance of well-being in its various forms. Your platform offers personalized mentoring services, guiding hotel projects from inception to operation. Could you provide insights into how this comprehensive approach supports your clients, including investors, owners, hoteliers, and property owners, throughout the entire lifecycle of their projects?

ABC Hospitality offers a range of services. 360º New Projects is about getting involved in projects from the outset, hand in hand with investors, participating in the choice of location, de-

fining the type of unit, applying a genuine wellness and healing concept, and consolidating national and international partnerships. A concept book is drawn up—a veritable bible for all the professionals who come together during the creation, construction, and opening of a hotel unit. A business plan is also developed to guide the investment and management of the operation once the hotel has opened. We accompany the investor/owner throughout construction while setting up the entire operational structure. We recruit and train staff and monitor the soft opening. Revaluation Projects is a service that suits hotels looking for repositioning and greater profitability. After diagnosing the unit, we present a tailor-made plan for the various areas of intervention, most of which need a well-defined concept and a lot of training and coaching in their leadership for this revaluation to be a success. And we also have an Implementation of ESG Management and Strategy - Sustainability and Regeneration service. After diagnosing the unit, we implement an ESG management and strategy plan that includes the documents needed to apply for certifications and ISOs and regulatory compliance. We suggest new technologies that will result in greater efficiency in operations and management, and we draw up a training and development program for the HR director or another appointed by the general management. ABC Hospitality serves a diverse clientele, including investors, owners, hoteliers, and property owners. How do you tailor your services to meet the distinct needs and objectives of these different client groups, ensuring that each one receives a customized approach?

Sector Insights: Portugal Hospitality & Leisure

Our main clients have mostly been private investors, unit owners, and hotel managers. For investors, we are more than just consultants; we are business partners with the hotel experience they don't have. It's a relationship of great trust and proximity since we take on much responsibility. We are true guides in the various areas we cover. We collaborate with the hotel and operation managers to bring innovation and differentiation in service, leadership, team motivation, positioning, and profitability. We end up being trainers. Building strong relationships with clients is crucial. Can you share examples of how ABC Hospitality's mentoring services have successfully supported clients in achieving their specific goals?

One of the best examples of ABC Hospitality's work is Quinta da Comporta. The owner, architect Miguel Câncio Martins, had a very clear vision of what he wanted, and from an early stage he bet on the wellness and healing segment. Our partnership has allowed us to combine the wisdom of architecture and interior design, a holistic vision, and respect for authenticity with the professionalism and passion of a team that has made one of the country's leading hotel projects happen. We accompanied the project from its inception to the soft opening. In terms of revaluing units, our best example is Singular Properties, a brand with unique, exclusive products and extraordinary positioning and profitability. Its owner, João Reis, had the foresight to request our collaboration and partnership to organize and restructure his entire internal hotel operation, including leadership training and coaching and creating service standards to reposition

the brand, improve service excellence, and encourage the growth of the group. ABC Hospitality seems to be driven by a vision to revolutionize hospitality management and operations. Could you provide some insights into your long-term vision and how your restless talents continue to innovate and shape the future of the industry?

We consider wellness and healing and sustainability to be a hotel's assets. Based on this belief and proof of great success, we create and revalue units in a unique and differentiating way by uniting various partnerships around a project that brings open innovation. Ultimately, it ends up not only offering consistency to the product, but also contributing to new training techniques that make us grow, allowing us to be permanently up to date. For us, hotels are and will always be genuine vehicles for wellbeing, changing mindsets, and even training in new ways of being. As a platform deeply passionate about hospitality, what are the key trends and innovations that you believe will have the most significant impact on the industry in the coming years, and how is ABC Hospitality preparing to embrace these changes for the benefit of its clients?

We believe that luxury hospitality is authentic and genuine in its action and impact on the whole. The commitment to training and educating teams on soft skills is fundamental, as is monitoring. Mandatory non-financial reporting is of the utmost importance so that these businesses have greater purposes once and for all. After all, hospitality is an industry of people, for people. ✖

Sector Insights: Portugal Hospitality & Leisure

C O M M U N I Q U E : S H E R AT O N C A S C A I S R E S O R T

EXCLUSIVE RETREAT RELAXED VACATION CONSIDERED A LUXURY OASIS, the Sheraton Cascais Resort is located on the stunning Portuguese coast, in the heart of Quinta da Marinha, between the cosmopolitan city of Lisbon and the picturesque village of Cascais. The resort offers a unique experience that combines sophistication, comfort, and breathtaking scenery. At the heart of this world-class retreat, you will find exceptional facilities and services, whether for a relaxed vacation or the hosting of truly memorable corporate events. Sheraton Cascais features 154 accommodations—from Deluxe Rooms to 4-bedroom Suites (45 to 200 m2)—suitable for any need. As part of this experience, there is a wide range of services: in the restaurants and bars category, you'll find the Glass Terrace, Yakuza Cascais, and the Flow Pool Bar; in the wellness and health category, there's Serenity—The Art of Well Being, a health club, an outdoor pool (half of which is heated), and a privileged view of the resort's lush gardens. Sheraton Cascais Resort offers premium residences, three-bedroom (182 to 207 sqm) and four-bedroom (210 sqm), ideal for long-term stays or accommodating larger families or groups. The fully equipped kitchen reflects Sheraton Cascais Resort's commitment to providing a complete experience, along with the spacious living room

and dining area. Balconies complement the space, providing a charming spot to appreciate the beauty of the surroundings. With its clients' needs in mind, the Sheraton Cascais has spaces for outdoor and indoor events, conference, and meeting rooms, and has recently created a new area, a new living room in the lobby bar, perfect for short meetings or quick get-togethers. With world-class infrastructure, the resort offers versatile spaces and state-of-the-art equipment to meet the unique needs of the corporate world. The meeting and event rooms have natural light, which is not common in these areas in resorts. Modernly decorated and fully equipped, these spaces provide a professional environment that stimulates productivity. At Sheraton Cascais Resort, the commitment to comfort and excellence is present in every detail. From luxurious accommodations to experiences at Serenity—The Art of Well Being and Glass Terrace, each element is designed to provide guests with an unforgettable stay, whether relaxing at the spa, indulging in exquisite cuisine, or enjoying a weekend brunch. The resort's gastronomic offer is represented in the Glass Terrace and Yakuza by Olivier restaurants, where guests are invited to embark on unforgettable experiences. Glass Terrace offers a fusion of local and

international flavors and the elegant atmosphere is accentuated by large windows that open to breathtaking views of lush gardens and, in the distance, the sparkling Atlantic Ocean. Each dish is a gastronomic masterpiece, combining fresh ingredients and sophisticated culinary techniques to please even the most discerning palates. On weekends, Glass Terrace transforms into a stage for a celebration of flavors, with a huge variety of food stations. From local delicacies to international dishes, the brunch is a true feast for the senses. Yakuza by Olivier presents exclusive creations that surprise with the best that the fusion of East and West has to offer. The balance between body and mind is elevated to a new level at Serenity-The Art of Well Being, a world-class spa. This oasis offers a variety of treatments, from relaxing massages to signature treatments, providing a rejuvenating escape for the most selective guests. The modern facilities and serene atmosphere of the spa invite moments of deep relaxation, ensuring that each visit is a unique experience. The resort's lush gardens offer a mass of activities for both children and adults. In this space, you can enjoy family yoga classes, Brave Kids (the resort's Kids Club), or rent bikes to explore the trails of Cascais and Sintra. ✖

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

Sector Insights: Portugal Hospitality & Leisure

FOCUS: GOLF TOURISM

HOLE-IN-ONE Portugal is a European powerhouse of golf tourism, with approximately 75 courses and a landscape and climate that are unparalleled for the practice of this sport.

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PORTUGAL has positioned itself in recent years as a top golf destination. With an average of more than 300 days of sunshine a year, this country, known as the California of Europe, has approximately 75 golf courses spread throughout its territory. With beautiful and challenging resorts, in addition to its excellent climate and exclusive hotel offer, Portugal has been recognized for years as one of the best golf destinations by a litany of magazines and associations. Some of the best golf courses are located in the surroundings of Lisbon, such as Oitavos and Estoril Golf Club. In the surroundings of Porto you can find the Estela Golf Club, the Campo de Golfe do Aqueduto, and the Amarante Golf Course. But if there is a region that takes the cake when it comes to playing golf in Portugal, that is the Algarve. Some of the courses that stand out in this sunny region are Monte Rei Golf & Country Club, Quinta do Lago, Ombria Resort Algarve, The Victoria Golf Course, Vale do Lobo, and Espiche Golf, among others. The Algarve is home to 31 of the approximately 75 golf courses in the country. Some of them have been designed by Jack Nicklaus, Arthur Hills, Nick Faldo, and Severiano Ballesteros. This region boasts stunning natural beauty, with breathtaking beaches next to idyllic courses featuring green hills that blend with the blue tones of the sky and the sea. Many of the golf courses in the Algarve, a region with a climate that allows year-round play, are located in well-preserved areas with spectacular views, factors that have contributed to it being named the best golf destination in Europe by the Global Gold Tourism Organization (IAGTO) in 2016, 2014, and 2020. The Algarve is a jewel for golf lovers, but the truth is that the whole country is a diamond for fans of this sport. Thus, the country was chosen for five consecutive years, between 2014 and 2018, as the best destination in the world by the World Golf Awards, delivered by the World Travel Awards organization. The incredible golf courses and the unbeatable climate are key factors to have reached that position. But other essential drivers are the development of luxury hotels to accommodate these tourists with high purchasing power, something that has materialized in recent years with the growth of hotel investment in Portugal in all categories, including luxury. By the end of 2022, Portugal received annual hotel investment of approximately EUR1.5 billion, a significant increase from EUR552 million in 2019, according to a study by Horwath HTL. This investment growth is driving the development of a significant hotel supply, with more than 70 projects in the pipeline by the end of 2022. Porto and Lisbon account for 52% of the total pipeline, while regions such as the Algarve remain a major attraction for international investors. Of those 70 projects, some are focused on the development of luxury hotels, a type of accommodation sought by the usual high-end golf tourism clientele. By the end of 2022, there were 581 hotel chains in

Portugal, including domestic luxury brands such as Pestana or Tivoli, as well as international companies such as Sheraton or Crowne Plaza, according to the study. “The hospitality sector in Portugal is currently experiencing significant growth and is emerging as one of the most sophisticated markets in Europe. This transformation is particularly notable due to the increasing presence of international brands in the industry,” said Mariano Faz, CEO at Ace Hospitality Management, in a recent interview. Other high-end hotel brands with a presence in the country include Eurostars, The Luxury Collection, Corinthia Hotels, and InterContinental. Portugal has been able to expand its supply of high-quality hotels thanks to a variety of government support, including strong tax and capital incentives to promote investment. “This has been achieved by supply qualification, either by supporting new supply or renovating the existing with strong tax and capital incentives to promote investments,” said Gonçalo Garcia, head of hospitality Portugal of Cushman & Wakefield. According to a study by Future Market Insights, global golf tourism is expected to reach a market size of USD40.4 billion by 2033, an increase of approximately 75% from USD23.1 billion in 2023. Portugal aspires to be a global golf hub, unsurprising as the sport contributed more than EUR1.9 billion to the local economy in 2018, of which EUR1.03 billion was direct impact, according to a study by the Portuguese Golf Federation carried out by Deloitte. That year, before the disruption caused by COVID-19 in world tourism, the practice of this sport accounted for 16,600 jobs, data that reflects the importance of this industry for the country. For the government, the golf industry is part of its efforts to position Portugal as one of the key destinations for the events and sports industry. Thus, the Estratégia Turismo 2027 document, approved in 2017, establishes the roadmap for Portuguese tourism for the next decade. The government aims to turn the country into an international destination for conventions and cultural and sporting events. These types of actions are key to improving Portugal's profile as a competitive destination, with an offer for clients with purchasing power, and a wide range of tourism initiatives. With the intention of increasing the number of golf events, the country has significantly increased the number of tournaments held annually. One of the most important is the Portugal Pro Golf Tour, promoted by the Portuguese Golf Federation, in which up to 78 athletes from all over the world participate. With the increase in the number of tournaments, the climate, solid air connections with the rest of Europe, and the growing offer of luxury tourism, Portugal is on its way to becoming a golf tourism powerhouse in Europe. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

PAR FOR THE COURSE M ig ue l F r a n c o d e S o u s a P R E S I D E N T, P O R T U G U E S E G O L F F E D E R AT I O N

The Portuguese Golf Federation is laser focused on growing the game in Portugal and dispelling misconceptions. Could you share the inception story of the Portuguese Golf Federation and highlight its journey in promoting and supporting the development of golf in Portugal?

How integral is the formation of strategic partnerships to the Portuguese Golf Federation´s mission and its efforts to foster sustainable golf development?

One of the PGF goals is to grow the game of golf in our territory. Golf embraces tremendous challenges due to some misconceptions, so we must get the right message across as a healthy, family, and fun game. Many of our golf courses already provide an excellent environment for newcomers, so all we need is to get people to the golf facilities. The recently launched beginners’ program—9 ½ Weeks —proved to be a great success. More than 20 clubs from around the country are delivering this program and the results have been very positive. Our work is more focused on those golf facilities whose clients are mainly locals, as the traditionally touristic regions do not lack clients.

We are a mere facilitator in this area as golf courses are extremely professionally managed and no golf course owner wants to spend more than the minimum necessary. As a federation we do have privileged contacts with local and national authorities, and we have been developing initiatives to assist the golfing industry to promote a sustainable sport. Some of those initiatives include, among others, the analysis of water efficiency in golf courses, developed by Turismo de Portugal in conjunction with the PGF and CNIG, and, more recently, a seminar about the use of treated water to irrigate golf courses. I strongly believe we are going in the right direction, but we keep facing some blowback from ideological groups that simply use soundbites to harm the golfing industry, ignoring all its benefits to the communities, the environment, and the economy.

The FPG emphasizes the importance of sustainability. How does the federation contribute to the development of sustainable sports facilities and events, and could you provide examples of successful initiatives in this regard?

Golf is without any doubt a very sustainable sport in a broad sense of the word. Golf courses create and maintain direct and indirect jobs within their communities. Golf has a tremendous economic impact in Portugal. According to a Deloitte study carried out in 2018, the direct and indirect economic impact of golf is EUR2 billion. And, finally, all our golf courses are extremely concerned about their footprint. Due to the water scarcity, Portuguese golf courses are working very hard to reduce their water consumption. Some of the works include the transition from cool season grasses to warm season grasses, the reduction of the grassed area, the installation of meteorological stations, and state-of-the-art irrigation systems, so every drop of water is carefully used. Legislation is being designed to limit the use of chemical products on golf courses and this will dramatically affect playing conditions. We are working very closely with the European Golf Association to guarantee that the EU sees golf as a specific sport, considering its impact on many European regions, and eases the potential limitations in the future.

With a focus on golf tourism, how does the FPG collaborate with stakeholders to promote Portugal as a golf destination, and what role does the federation play in fostering innovation within the golf industry?

As a sports federation, our responsibility lies on promoting participation, organizing competitions and national teams, and providing golf clubs with the necessary tools to pursue these goals. Nevertheless, we end up promoting Portugal as golf destination through our international championships, in particular the Open de Portugal at Royal Óbidos. The PGF has been establishing a networking system with all stakeholders so we can find the right solutions for the various challenges we face. Unfortunately, we are witnessing a tremendous lack of strategy in terms of promoting Portugal as one of the greatest golf destinations in the world. Recently we were awarded the World’s Best Golf Destination by the World Golf Awards, but the national authorities are disinvesting in the promotion of Portugal abroad. The abandonment of the Portugal Masters and the dramatic reduction of the Open de Portugal at Royal Obidos financial support are signs of concern to the golfing industry. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

ALL FOR ONE Pe d r o F o n ta in h a s MANAGING DIRECTOR, APR PORTUGAL

APR Portugal is a powerful lobbyist and hospitality sector association that consistently works for the betterment of the sector and its participants. Can you provide an overview of Associação Portuguesa de Resorts, its mission, and its role in Portugal's hospitality and leisure sector?

The Portuguese Association of Residential Tourism and Resorts in Grandola, Alentejo, Portugal, is pivotal in Portugal's residential tourism landscape. Comprising over 30 esteemed companies, the association oversees more than 100 resorts and tourist developments. These companies, each represented by their top executive, have banded together to safeguard their interests. As a unified voice, the association addresses many concerns, from taxation and legislation to fundraising, sector research, and the international promotion of Portugal's residential tourism. The association's endeavours focus on three foundational pillars. First, we prioritise influencing the pertinent governmental and regulatory bodies, ensuring that the sector's needs and perspectives are ever-present in decision-making forums and public discourse. Secondly, the association is ardently committed to promoting its members and Portugal's reputation as Europe's prime destination for residential tourism. Through targeted campaigns and initiatives, we spotlight the unparalleled offerings of the Portuguese residential tourism scene. Lastly, recognising the industry's rapid evolution, the Association fosters industry knowledge. By collating insights from the national and international spectrum and innovating resources, we empower our members to stay at the forefront of the sector's dynamism. What current market trends do you see shaping the resort industry in Portugal, and how does your association support its members in adapting to these trends?

The Portuguese resort and residential tourism landscape is undergoing a profound transformation, influenced by a confluence of diverse market trends. One example is the emergence of branded residences, a rapidly expanding segment in the luxury residential arena. These represent collaborations between luxury hotel brands and real estate visionaries. The allure lies in the

blend: the exclusivity of a luxury hotel name combined with the comforts and permanence of a residence, complete with top-tier hotel services at one's doorstep. Parallel to this, sustainable tourism is gaining momentum, with discerning travellers gravitating toward eco-conscious accommodations that mirror their environmental values. The post-pandemic world has also seen a renewed appetite for health and wellness tourism, with individuals seeking sanctuaries that offer spa treatments, meditative retreats, and holistic wellness experiences. Digital prowess is no longer optional but essential. Resorts are weaving in intelligent technology to craft seamless, enriched guest journeys, from virtual reality tours to digital bookings. The modern traveller, curious and cultured, seeks authentic local experiences, yearning to be immersed in the unique cultural tapestry, savour regional cuisines, and partake in native activities. Lastly, as remote work permeates our lives, the "workstation" concept is blossoming, where work meets leisure in idyllic resort settings. The association navigates these multifaceted trends. Through strategic promotional campaigns, the association is spotlighting pioneering members trailblazing with sustainable initiatives and authentic experiences, inspiring others to innovate similarly. We also lead lobbying efforts, ensuring the sector's voices are heard and acted upon and interests are championed. Facilitating member collaborations fosters a milieu of shared learning. Portugal has become a popular destination for leisure and tourism. From your perspective, what are the key factors that make Portugal an attractive location for resorts, and how is the association capitalizing on these factors?

With its diversity of attractions, splendid landscapes, cultural legacy, gastronomy, climate, and hospitality, Portugal has firmly established its name as a coveted destination for leisure and tourism. Travellers find value in Portugal's offerings, as the country historically tends to be more economical than some Europe-

Sector Insights: Portugal Hospitality & Leisure

an counterparts. Above all, the consistent ranking of Portugal as one of the globe's safest countries augments its appeal. Amid this backdrop, APR champions Portugal's narrative through strategic promotional endeavours, casting it as Europe's premier residential tourism destination. Beyond mere promotion, APR wields its influence, liaising with the government and regulatory bodies to sculpt policies that resonate with the aspirations of the residential tourism sector. Could you share some success stories or notable initiatives led by the Associação Portuguesa de Resorts that have positively impacted the sector or its members?

In the early chapters, as the nation contemplated strategies to attract global talent and retirees, APR discerned the latent potential in a Non-Habitual Resident (NHR) regime. Our advocacy, underpinned by research and economic projections, made a compelling case. Our expertise and dedication helped transform the NHR from an abstract concept into a beacon of policy, setting Portugal apart as tax-advantaged for many. As the horizon of opportunities expanded, the embryonic idea of a Golden Visa regime beckoned. With an innate ability to foresee the implications of such an initiative, APR immersed itself in shaping its very framework. Yet, as with any narrative, challenges were imminent. By 2023, the very essence of the Golden Visa came under threat by the socialist party's intent to dismantle it. APR, with its characteristic resilience, mounted a spirited defence. Through public campaigns, stakeholder dialogues, and leveraging their influential network, we championed the myriad benefits that the nation had reaped since the Golden Visa's inception. Amidst these milestones, one initiative stands out for its sheer depth and magnitude: the benchmarking of Portugal's residential tourism. With an intent to offer data-driven insights and a holistic view, APR produced an exhaustive comparative study, ranking Portugal vis-à-vis its European counterparts. Rather than just a

compilation, the study was a deep dive. This narrative provided invaluable insights to stakeholders and solidified Portugal's stature in the European residential tourism panorama. Looking forward, what are the main goals and initiatives that the Associação Portuguesa de Resorts plans to pursue in the near future to further enhance the sector and its role within it?

APR stands at a pivotal juncture, ready to steer Portugal's residential tourism sector into a future characterised by growth, innovation, and sustainability. Strengthening advocacy remains paramount as part of our vision for the coming years. The landscape of regulations is evolving, especially in the aftermath of shifts like the Golden Visa alterations. APR is poised to redouble its efforts, championing policies that resonate with the residential tourism sector's aspirations and needs, ensuring long-term advantages for its members. But advocacy is just one facet of this multi-dimensional approach. As global conversations pivot toward environmental responsibility, APR recognises the imperative of sustainability. The association is gearing up to make eco-friendly resort developments and sustainable tourism practices not just an option but a norm. The goal is clear: position Portugal's residential tourism sector as a vanguard in green initiatives. Yet, this can only gain traction with visibility. Hence, promotion and marketing are central to APR's blueprint for the future. The association envisages a diversified approach, ranging from participation in international tourism fairs to curating webinars and leveraging the vast expanse of digital platforms. In parallel, there's a recognition of the power of insights. Continued research efforts will keep members abreast of global trends, offer insights into competitors' strategies, and spotlight potential growth avenues. Through this intricate tapestry of goals and initiatives, APR is not just shaping its destiny, but is also carving out a luminous trajectory for Portugal's entire residential tourism sector.. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

ALL YOU’LL NEED Ol ive r Ke y GENERAL MANAGER, PENHA LONGA RESORT

Modern amenities, including a spa, 27-hole golf course, and Michelinstar dining options, coupled with the location’s historic nature, make Penha Longa Resort a key name on the luxury resort map. What recent trends have you experienced in the luxury resort sector and how is the Penha Longa adapting?

With my experience in the luxury resort industry, I have adapted to evolving market trends. At Penha Longa Resort, we pride ourselves on aligning with and setting standards for key industry trends. Sustainability is central to our commitment, focusing on eco-friendliness, energy efficiency, and reducing plastics. Personalization is core to our approach, offering bespoke experiences tailored to individual preferences. Culinary excellence is also an important asset, emphasizing local, high-quality ingredients. In the dynamic hospitality sector, we excel by delivering exceptional service, personalized experiences, and actively contributing to environmental preservation. Our commitment ensures every guest enjoys a memorable stay at Penha Longa Resort, where luxury, sustainability, and personalization converge for an unparalleled experience. Penha Longa Resort has a rich history dating back to a 14th-century convent. Could you provide our readers with an overview of what makes this resort a unique and special piece of real estate, combining historical and modern elements?

Penha Longa Resort preserves its rich past while offering contemporary comforts. The meticulously maintained monastery's original structures allow guests to immerse themselves in an authentic historical atmosphere—we offer a daily monastery tour and historic circuit for guests. The resort seamlessly integrates modern amenities, including a spa, 27-hole golf course, and dining options, ensuring comfort. The ongoing renovation of 184 rooms, which will end in May 2024, exemplifies the commitment to ultimate comfort and luxury, combining contemporary design with historic charm. The new duplex apartments offer modern living for families and friends, featuring spacious layouts and panoramic views. This unique accommodation option complements the historical ambiance, enhancing the overall immersive experience at Penha Longa Resort. How has golf tourism evolved, and what role does the resort play in catering to golf enthusiasts, both locally and internationally?

Penha Longa Resort's golf journey has evolved with significant changes in golf tourism. Our distinctive golf courses, attracting enthusiasts globally, reflects our commitment to adapting to the evolving trend of combining sports with leisure travel. For local enthusiasts, we offer membership programs, events, and tournaments, fostering a strong community. Internationally, we have positioned Penha Longa Resort as a golf destination through outreach to operators, participation in events, and tailored packages, including clinics and accommodation. Our success in fostering golf relations with golf enthusiasts stems from a commitment to the quality of our courses and the overall golfing experience. Penha Longa boasts two Michelin-starred restaurants, LAB by Sergi Arola and Midori. How do these culinary achievements contribute to the overall guest experience, and what efforts are made to maintain such high culinary standards?

Beyond recognizing exceptional food, these awards signify our commitment to providing something extraordinary in our three Michelin restaurants: Midori, Lab by Sergi Arola and Eneko Lisboa. Our chefs craft innovative dishes with the finest ingredients, ensuring each meal is a work of art. Dining at these restaurants creates lasting memories, with unique flavors, impeccable service, and an elegant ambiance. Beyond the food, Michelin-starred dining at Penha Longa is about creating cherished moments. It exposes guests to excellent cuisine from renowned chefs, offering a culinary world tour on our grounds. What exciting developments or enhancements do you envision for Penha Longa Resort in the near future, and how do you plan to elevate the resort's offerings in terms of accommodations, activities, and overall guest satisfaction?

We are committed to elevating the resort's offerings in accommodations, activities, and overall guest satisfaction. Penha Longa Resort is dedicated to creating memorable and sustainable experiences that connect guests with the natural beauty and rich history of our remarkable location. My future vision is all about making moments that last a lifetime. ✖

Sector Sector Insights: Insights: Portugal Portugal Hospitality Hospitality & & Leisure Leisure

COMMUNIQUE: RIO-A-DENTRO

WINDING RIVERS EMBARK ON A JOURNEY OF DISCOVERY WITH RIO-A-DENTRO NATURE TOURS ALONG THE TAGUS RIVER

Rio-a-Dentro, a specialized boat tour company located just 50km from Lisbon, invites you to explore the enchanting wonders OF THE TAGUS RIVER. THIS UNIQUE EXPERIENCE takes you beyond the commercial

facade, immersing you in a paradise of blue skies, green banks, and hidden islands teeming with wildlife. As you set sail on our modern, environmentally friendly boats designed for the Tagus, revel in 360º panoramic views of the breathtaking landscape. Our local guides, deeply knowledgeable about the river and its flora and fauna, add a personal touch to your journey. Tagus River, more than just water, unfolds its magic along the Escaroupim-Salvaterra de Magos course. Freshwater, green shores, and the fertile floodplains of Borda d'Água magazine characterize this stretch. The expressions of awe from first-time navigators reflect the river's charm, a real surprise so

close to Lisbon. Tides shape the Tagus here, revealing unique, secret places known only to locals. Rio-a-Dentro carefully curates routes through the most beautiful courses, where the sky is bluer and the river greener. Islands like Ilha dos Cavalos, Ilha das Garças, and Ilha das Cabras offer glimpses into a world of horses, birds, and fish, forming a generous haven of nature. The Mouchões, mysterious and often uninhabited islands, boast unique ecosystems formed over time by the clustering of sand and sediments. Witness the creative process of nature as islands in different life cycles emerge and disappear, hosting thousands of nesting herons during the season. Rio-a-Dentro Nature Tours crafts an ideal itinerary for those seeking to disconnect from daily life, providing an intimate encounter with the fauna and flora of the Tagus river. A 17-19 km boat ride around Escaroupim reveals secondary channels and islands, passing through charming villages like Valada and Avieira Palhota.

The journey continues to the crown jewel of the Tagus, Ilha das Garças. Here, during the nesting season, seven different bird species, including Spoonbill, Heron, and Egret, showcase a truly fantastic and unique spectacle. Explore other wild islands like Ilha dos Cavalos, where horses roam freely, and Ilha dos Amores, untouched by human presence. Rio-a-Dentro's commitment to showcasing the hidden splendor of the Tagus River extends to navigating secondary channels, places of unparalleled beauty. Boarding at Cais do Escaroupim, the tours traverse the river's gems—Ilha dos Cavalos, Amores, and Ilha das Garças. With each turn, our guides share insights into the local fauna and flora, urging you to don comfortable clothes, grab a camera, and bring binoculars for an immersive experience. Embark on a nature-filled escapade with Rio-a-Dentro, where the Tagus River, ever-changing and always new, invites you to discover its secrets, history, and unique biodiversity. ✖

Sector Insights: Portugal Hospitality & Leisure

FOCUS: DEVELOPING SKILLED TOURISM WORKERS

THOSE BEHIND THE MAGIC Portugal’s Estoril Higher Institute for Tourism and Hotel Studies (ESHTE) has come up with a curriculum and teaching method that will supply the country’s tourism industry with skilled workers in the coming years.

❱

SOME 30 MILLION PEOPLE each year arrive in Portugal as tourists,

which is three times the country’s population. It is difficult to pinpoint the country’s attractions as they are so many: Portugal’s wealth of cultural heritage, its lively and diverse climate, and the country’s tasty cuisine are certainly among the contributing factors. What makes the country even more interesting for a traveler is the competitive price to quality ratio, as Portugal is among the less expensive countries in the eurozone. From Costa Verde in the north to Costa de Prata in the center and the Caparica Coast near Lisbon, the hospitality industry is active all-year round, thanks to the country’s Mediterranean climate. This non-seasonal work pattern creates hundreds of thousands of permanent jobs for the locals. As with the rest of the service sector, tourism heavily relies on human resources, and it is estimated that there are some 300,000 people directly employed across the tourism industry. Although some of these employees work relatively unskilled jobs, a notable percentage of them handle tasks that demand a great deal of training and preparation. Hotel managers, master chefs, and the marketers who make the Portuguese tourism sector tick should come from somewhere. There is one institute in particular that is fully dedicated to train the kind of specialized workforce that the tourism sector requires in Portugal. ESHTE is creating a growing talent pool of individuals who are well-trained in the more delicate aspects of hospitality and have something to add to the sector. The kind of training that ESHTE offers officially counts as higher education, because ESHTE is integrated in the Portuguese polytechnics system. Hospitality and tourism are inexact sciences, meaning that there is not a set of standardized textbooks that can prepare one to function well in the sector. As for the practical part of the curriculum, job placements are available to give the trainees a high degree of hands-on experience. “ESHTE cooperates, mainly through its internship department, with hotels, restaurants and tourism businesses to offer students practical training and internships, providing valuable industry experience,” says the institute’s president, Carlos Santiago Neto Brandão. “This allows students to apply what they have learned in the classroom to real-life situations. We develop research partnerships with organizations to conduct applied research on tourism needs and trends, which also helps to update and strengthen its curricula,”

Neto Brandão told TBY. Among others, ESHTE has partnership agreements with the Portuguese Association of Travel Agencies and Tourism (APVT), the Portuguese Association of Tourist Animation and Event Companies (APECATE), and the Association of Hotels and Restaurants of Portugal (AHRESP). These associations have a wide-enough network to give an excellent choice of internship opportunities to ESHTE’s students. Although ESHTE gives students a highly sought-after skillset, its graduates are not conditioned to merely look for vacancies and job opportunities. Instead, they are encouraged to have an entrepreneurial mindset. When one is equipped with the right industry knowledge, management skills, and has spent several internships in different segments of the industry, then what is to stop them from launching their own enterprise, especially in a sector such as tourism which is usually conducive to startups? While ESHTE has been supplying the Portuguese tourism industry with excellent staff, it has among its alumnus a fair number of ambitious entrepreneurs who have pushed the frontiers of the sector forward. Collaborations with DNA Cascais are underway to accelerate the pace of innovation in the sector. DNA Cascais runs some of the best youth entrepreneurship programs in the country, aiming to train the businesspeople of Portugal in every imaginable industry. Moreover, ESHTE has created its in-house entrepreneurship program, Poliemprende. “We teach to innovate and we innovate while we teach,” goes one of the mantras used by ESHTE. Linguistic barriers have largely disappeared across the sector over the last two decades, as the number of those who speak English as a foreign language has increased. However, better linguistic skills are still of crucial importance for those preparing for a career in the sector. ESHTE wants its graduates to have a high degree of fluency in English and preferably in even more foreign languages. English-language courses will soon be on offer for both local and international students. By bringing over a diverse mix of students from across the world, the English-language programs will also immerse students in a multicultural environment, where their intercultural communication skills will evolve. Study abroad opportunities and student exchange opportunities, meanwhile, will help the students to broaden their horizons before embarking on their careers in Portugal’s tourism sector. ✖

Sector Insights: Portugal XXX Hospitality & Leisure

Sector Insights: Portugal Hospitality & Leisure

COMMUNIQUE: VIL AL ARA THAL ASSA RESORT

AN OASIS OF LUXURY AND SERENITY IN THE ALGARVE NESTLED IN the charming village of Porch-

es in the Algarve and conveniently situated just 50km from Faro Airport, the Vilalara Thalassa Resort is recognized as one of the Algarve's most exclusive five-star resorts. Surrounded by 11ha of lush seaside gardens with direct access to a pristine, golden sandy beach, Vilalara offers a naturally beautiful and peaceful setting. The resort’s design, with its soft colors and organic shapes, evokes the works of Gaudí, creating a harmonious retreat for the senses. Perched majestically on the cliffs of Praia das Gaivotas, the resort boasts 104 junior suites, seven suites, and 12 apartments. These spacious and welcoming spaces are bathed in abundant natural light, offering stunning views of the meticulously maintained gardens, shimmering pools, or the boundless blue of the sea. At the heart of this oasis lies the Vilalara Longevity Thalassa & Medical Spa, a unique combination of thalassotherapy treatments, a state-of-the-art spa, and solutions for well-being and anti-aging. Recognized as one of the best thalassotherapy centers in the world, this facility is an invitation to a journey of deep rejuvenation and relaxation.

Dining at the resort is a celebration of flavors and innovation. The B&G restaurant, emerging as a stage for high gastronomy with a modern twist on Portuguese tradition, highlights top-quality local ingredients. For a more casual yet equally delicious dining experience, guests can choose the Terrace Grill, perfect for savoring fresh fish dishes, meats, and shellfish, accompanied by unforgettable ocean views. Meanwhile, nestled within a setting that echoes the charm of traditional architecture in the Sardinia region, the Grotta Rotonda Trattoria draws its inspiration from classic Italian dishes enhanced by the discovery of local and Italian products to serve the most authentic food. Beyond luxury and comfort, the Vilalara Thalassa Resort offers a diverse range of carefully selected activities to enrich each guest's stay. Dive into the local rich culture with guided tours of historic fishing villages, enjoy the serenity of the ocean on boat trips, and taste the complex flavors of regional wines in exclusive tasting sessions. Each experience is a gateway to physical and mental well-being. For sports enthusiasts, the resort offers two pickleball courts, a vibrant sport that combines elements of table tennis, ten-

nis, and badminton under the gentle Algarve sun. Sustainability is a cornerstone at Vilalara Thalassa Resort, proudly one of the first in Europe to achieve Biosphere Certification, in line with the United Nations Sustainable Development Goals. This commitment is reflected in environmental care, the valorization of local culture, and the promotion of conscious tourism. This is the Vilalara Thalassa Resort: a tribute to the Algarve, where luxury meets the untouched beauty of nature and a genuine commitment to sustainable practices, ensuring guests a stay that will linger in memory as a collection of extraordinary experiences. ✖

Sector Insights: Portugal Hospitality & Leisure

INTERVIEW

VALUABLE EDUCATIONAL EXPERIENCE Ca r l os Sa n tia g o Ne to B ran d ão P R E S I D E N T, ESTORIL HIGHER SCHOOL OF HOTEL MANAGEMENT AND TOURISM (ESHTE)

ESHTE offers degrees in hospitality, tourism, and gastronomy to prepare students for careers in the tourism industry, while also strengthening its international reach as a global leader in hospitality and tourism education. Can you provide an overview of ESHTE’s academic focus and its role within the tourism industry?

ESHTE is an institution that belongs to the Portuguese polytechnic higher education system, being one of the five Portuguese higher education schools not integrated in Polytechnic Institutes. ESHTE offers bachelor’s, master’s, and doctoral degrees (in partnership) in hospitality, tourism, and gastronomy. The main goal lies in the importance given to preparing students for careers in the hotel and tourism industry, which in addition to a solid theoretical education, provides practical classes as well as hands-on experience through training placements. Is therefore clear that ESHTE is unavoidably playing an important role in the tourism industry, training qualified professionals to meet the demands. It is therefore natural that our graduates have a high rate of employability. Additionally, ESHTE also has partnerships with industry organizations, which ensures that its curriculum and programs are constantly updated and relevant to the needs of tourism. How does the university itself of the Portuguese tourism ecosystem, and what types of partnership offer win-win opportunities?

ESHTE cooperates, mainly through its internship department, with hotels, restaurants, and tourism businesses to offer students practical training and internships, providing valuable industry experience. This allows students to apply what they have learned in the classroom to real-life situations. We develop research partnerships with organizations to conduct applied research on tourism needs and trends, which also helps to update and strengthen its curricula. We work with professional associations such as APVT, APECATE, and AHRESP to provide students with opportunities to network with industry professionals and to keep up-to-date with the needs of tourism professionals. Such partnerships allow the students to gain valuable experience and exposure to the labor market. In addition, they help ensure ESHTE’s plans and curriculum consider industry needs, making its graduates highly sought after by employers. To what do you attribute Portugal’s reputation for excellence in matters of hospitality and tourism?

Portuguese gastronomy is known for having a varied offer, highly recognized and with an excellent price/quality ratio. Portuguese hospitality is recognized for its warmth and attention, which creates a positive experience for tourists and helps build a strong reputation for excellence. Portugal is blessed with a very significant natural beauty, but above all very varied, considering its size. Beaches, mountains, plains, and parks, offering unique and attractive destinations for tourists. The Portuguese state has invested heavily in infrastructure over the last few decades, which ends up greatly benefiting the sector, insofar as it has helped to improve the quality and accessibility of tourist destinations. Portugal has a good educational system, particularly in the areas of hospitality and tourism, with an offer extended to practically the entire territory. This contributes to a good source of recruitment of well-trained professionals who can provide high-quality services. These factors, along with contributions from the private sector, have helped to establish Portugal’s reputation as a destination for high quality hospitality and tourist experiences. What mechanisms are in place to strengthen the institution’s international reach?

ESHTE has partnerships with other higher education institutions and industry organizations around the world, which provides opportunities for student exchanges, research collaboration, and international networking. ESHTE intends to offer English-language programs and courses, which makes it accessible to international students and helps building its reputation as a global leader in hospitality and tourism education. With study abroad opportunities, we provide our students opportunities to study abroad and to gain international experience, which helps to broaden their perspectives and to develop their global network. Regarding marketing and international dissemination, we participate in various activities to promote its programs and to attract international students, teachers, and tourism partners. These mechanisms help ESHTE expand its international reach, build its reputation as a global leader in hospitality and tourism education, and provide its students with opportunities to gain a global perspective. ✖

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Sector Insights: Portugal Hospitality & Leisure

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