Tourism is accelerating toward a record year, driven by stronger travel demand from both domestic and international visitors and a rebound in overall tourism activity. Prices are rising, yet industry insiders anticipate a period of strong growth and a historic summer ahead. This surge in demand helped offset the pandemic slowdown and is now having a direct impact on employment within the tourism sector.
Even before the peak summer season began, the industry succeeded in lifting job creation to new heights. Across various tourism sub-sectors, firms added a substantial number of workers, with Social Security figures reaching an all-time high this year. The latest month surpassed the previous record set in July of the prior year, signaling a robust hiring environment.
According to records from SGK and the Ministry of Industry, Trade and Tourism, participation in tourism activities rose by more than 5.5 percent in May compared with the same month a year earlier, outpacing the broader economy where growth stood at 2.7 percent. The new record underscores tourism’s growing share of the economy, accounting for a meaningful portion of total sectoral activity in the country.
Over the past year, tourism employment added 144,272 new roles. All major tourism branches posted gains versus May of the previous year. The accommodation segment reached 1.84 million workers, with 87,544 affiliates in accommodation services, 55,257 in food and beverage services, and 32,287 in lodging. The travel agency sector added 6,571 workers to exceed 65,900, while other tourism activities employed over 841,600 people, up by 50,157 positions.
More employment and more stability
Industry leaders describe today’s data as encouraging ahead of a summer that is expected to attract record tourist numbers and spending. The minister overseeing the sector notes that employment is not only growing in quantity but also improving in quality, with stronger protections and guarantees for workers’ rights. This reflects a broader recovery in the industry that combines higher headcounts with better job stability.
The renewed stability is supported in part by large tourism groups. The trade association representing the thirty largest companies in the sector highlights that labor market volatility has eased significantly since the labor reform, reducing the reliance on temporary contracts and supporting more permanent positions. The latest quarterly report from Exceltur shows that a large majority of sector affiliates now hold permanent contracts, underscoring lasting changes in employment practices.
Still, companies recognize challenges in aligning growth with capacity. Many operators warn that completing all necessary mergers and consolidations to meet demand will be difficult. At the same time, attracting skilled workers remains a top concern as some employees left the industry during the protracted pandemic and have since relocated to other sectors.
Exceltur points to another hurdle on the horizon: housing availability in coastal and popular destinations. In the months ahead, areas that struggle to secure housing for seasonal staff may need to offer extended housing solutions, such as sun-drenched accommodations, to maintain service levels throughout the high season. This issue could shape hiring and deployment strategies in coastal locales as demand peaks across the region.
Overall, the tourism sector is showing resilient growth in employment and wages, with structural reforms helping to stabilize the workforce and support a higher standard of work life for employees. Analysts expect continued expansion as travel rebounds and consumer confidence strengthens, marking a new era for tourism across the country.
Note: Industry reports and governmental data cited in this summary include records from SGK and the Ministry of Industry, Trade and Tourism, with insights provided by Exceltur and participating industry groups. (Source: industry reports and association updates)