Economics in a picture
The creation of companies in the tourism sector reflects the dynamics of this activity
Companies in sectors whose activity is intrinsically linked to tourism (mainly tourism), such as hotels and other accommodation, had significantly higher birth rates between 2011 and 2017 than the other sectors, and with an increasing trend. The birth of companies in sectors whose activity is only partially related to tourism (partially tourism), such as restaurants and bars, showed a growing trend, albeit at a slower pace and level than those of mainly tourism. In contrast, in manufacturing and other services, the birth rates of companies were relatively stable over the period, with noticeable decreases in the crisis periods of 2008-2009 and 2012.
These facts are indicative of the increased importance of the tourism sector in the dynamics of the economic activity in Portugal. Part of firms’ birth rate in tourism-related activities is due to the widespread adoption of digital hosting platforms. This has created favorable conditions for the establishment of companies that manage this type of services, resulting in an increase in tourism intensity in Portugal. Mainly tourism companies have the lowest mortality rates among the four sectors analyzed. These companies show similar age structures (average and median age) as in other sectors, suggesting that tourism is now a established sector in Portugal, not necessarily involving greater risk than other businesses.
For more details see Filipe B. Caires, Hugo Reis and Paulo M. M. Rodrigues (2019) "How does tourism-related firm dynamics differ from other sectors?" in "Portuguese economic growth: a view on structural features, blockages and reforms", Banco de Portugal.
Prepared by Filipe B. Caires, Hugo Reis and Paulo M. M. Rodrigues. The analyses, opinions and findings expressed above represent the views of the authors and not necessarily those of Banco de Portugal or the Eurosystem.
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