Portugal Tourism Strengthened as Hotels and Restaurants Approve Wage Increase for 2026: All You Need to Know

Published on December 27, 2025

Portugal tourism is set for a structural boost in 2026 as the country’s hotels and restaurants approve an average five percent wage increase under new collective agreements with the Union of Workers in the Services Sector (SITESE). According to official information from the Portuguese Hotel Association (AHP), the Portuguese Association of Hotels, Restaurants and Similar Establishments (AHRESP), and government social dialogue references, this revision aims to reinforce tourism sector stability and attract talent to a labour market under pressure from rising demand.

The new salary framework, effective 1 January 2026, is positioned as a transversal upgrade across all professional categories in tourism accommodation and food service. It exceeds the 4.6 percent reference increase set in Portugal’s national Social Dialogue for 2026, reflecting a deliberate strategy to strengthen average wages in these strategic tourism sectors. Authorities and sector associations view this as a key measure to safeguard service standards as Portugal continues to grow as an international tourism destination.

Portugal’s Hospitality Wage Deal Exceeds Social Dialogue Benchmark

The agreements signed between AHRESP, AHP and SITESE update the salary scales for all professions covered by their collective bargaining agreements. Official communications indicate that the negotiated average rise of about five percent places hotels and restaurants in a leading position compared to the broader 4.6 percent increase indicated in tripartite Social Dialogue settings for 2026.

For Portugal tourism, this move signals an intention to remain competitive not only in pricing and product but also in labour conditions. Higher wages in hospitality support retention of experienced staff, reduce turnover costs and help sustain the quality of service that underpins Portugal’s reputation in global tourism rankings.

AHP Revises Collective Agreement Above Five Percent for Hotels

The Portuguese Hotel Association (AHP) has confirmed, through its official releases, that it reached an understanding with SITESE on a comprehensive revision of its Collective Bargaining Agreement (CBA) for 2026. This revision includes an average wage increase of more than five percent, specifically targeting workers in the hotel and tourist accommodation subsectors.

This enhanced rise directly affects front-office staff, housekeeping, food and beverage teams, and other operational roles critical to tourism service delivery. By offering better compensation, Portuguese hotels expect to mitigate the impact of labour shortages, a challenge frequently highlighted in government and sector reports, and to ensure that visitor growth is met with adequate staffing levels across major tourism regions such as Lisbon, Porto, Algarve and the islands.

AHRESP Agreement Covers Restaurants and Tourist Accommodation

The parallel agreement concluded by AHRESP and SITESE applies across a broad spectrum of restaurants, cafés, bars and similar establishments, as well as segments of tourist accommodation falling under its scope. The association describes the negotiation process as responsible and balanced, referencing a context of rising operating costs and difficulty in sourcing qualified labour.

For Portugal tourism, this deal reinforces a commitment to valuing professionals who form the backbone of visitor-facing services. Updated salary scales across all categories aim to promote more stable labour relations, with contracts better aligned to present realities in tourism demand and cost structures. This stability is expected to create a more attractive working environment, encouraging workers to remain in the sector and improving continuity for frequent visitors.

Addressing Labour Shortages and Cost Pressures in Tourism

Official commentary from AHRESP and AHP notes that negotiations took place in a period marked by increased operational costs, including energy, supplies and compliance, alongside pronounced labour shortages in hospitality. Both associations underline that the agreements seek a balance between economic sustainability of companies and the need to make careers in tourism more appealing.

Portugal’s tourism strategy, as referenced on national promotional and policy platforms, depends heavily on service quality and human capital. By raising wages above the national social benchmark, the hospitality sector positions itself to compete more effectively for workers vis-à-vis other industries, thereby protecting the visitor experience that has driven record tourism arrivals in recent years.

Strengthening Careers and Attractiveness of Tourism Professions

The revised collective agreements explicitly address career enhancement, with the objective of offering clearer progression paths, better entry conditions and more recognition for skilled roles. AHRESP stresses that the wage increase is part of a broader effort to value professionals in restaurants and tourist accommodation, supporting long-term careers rather than purely seasonal or precarious employment.

This focus aligns with Portugal tourism objectives to promote sustainable, year-round tourism in multiple regions. Better remuneration and career prospects help retain experienced staff, whose knowledge and guest service skills are essential for maintaining high satisfaction levels, encouraging repeat visits and word-of-mouth recommendations in international markets.

Dialogue and Social Partnership as Pillars for Tourism Competitiveness

Both AHRESP and AHP highlight that the agreements with SITESE stem from a stance of constructive, transparent and responsible dialogue. This approach reflects Portugal’s broader tradition of social partnership, where employers, unions and public authorities cooperate to shape labour conditions in strategic sectors such as tourism.

Such dialogue-based models are considered crucial for long-term tourism competitiveness and solidity. By reaching consensus-based solutions, the sector projects an image of stability to investors, workers and international partners. This stability supports ongoing investment in hotels, restaurants and tourism infrastructure, with the wage agreements forming one element of a wider framework for sector resilience.

Next Steps: Detailed Implementation and Sector Impact

AHRESP has announced that it will soon publish more detailed information on the content of the agreed changes, including specific tables for professional categories and transitional rules. AHP will likewise disseminate comprehensive updates to member hotels, ensuring consistent implementation across the national tourism network.

For Portugal tourism, the practical rollout of higher wages from 1 January 2026 is expected to translate gradually into improvements in staff availability, morale and service. As the sector continues to recover and expand, these agreements are positioned as foundational measures to reinforce the attractiveness, competitiveness and solidity of hospitality and tourism as pillars of the Portuguese economy.