Andorra’s hotels still face closure risk amid staff shortages

The regulations governing the new overseas recruitment programme, published on 27 July, come at a pivotal time for Andorra’s hotel sector as businesses race to secure enough staff ahead of the winter season. At the same time, the tourism outlook remains positive. The Andorran Hotel Association expects hotel occupancy to reach around 67.5% in July, up two percentage points from a year earlier, while August occupancy is forecast to hold at 83%, matching the strong performance recorded in 2025. In this interview, Jordi París, president of the Andorran Hotel Association, discusses the sector’s key challenges, the ongoing labour shortage, and the opportunities ahead. Looking ahead to the next winter season, what impact do you expect the European Union’s Entry/Exit System to have, particularly on the recruitment of non-EU workers? We have now had a year of experience with the Entry/Exit System, and I believe that the vast majority of establishments have already adapted to it. Everyone is now familiar with the new rules, which have created a new framework for managing the recruitment of workers from non-EU countries. The regulation applies across the European Union. Andorra has been able to adapt to it, although the greatest impact was felt during the 2025–2026 winter season. Overall, the transition was managed quite successfully. Any major change initially creates uncertainty, but we have adapted. Under the current rules, anyone we want to recruit from outside the EU must have spent at least 90 days outside the Schengen area before they can be hired. But is it realistic to replace around 50% of the workforce with workers from the European Union? I would say the proportion is actually even higher. Today, hotels are struggling to maintain a stable workforce. What was once largely a seasonal challenge, particularly during the summer months, has become a structural issue: finding enough staff to fill vacancies. The recruitment quotas allocated by the Government are not increasing at the same pace as demand for workers. As a result, our main recruitment markets remain non-EU countries, particularly Latin America and, to a lesser extent, North Africa. At the same time, attracting workers from the European Union has become increasingly difficult. Employment levels in Spain and France are high, leaving a much smaller pool of available workers. In Andorra, the housing shortage further reduces our competitiveness as a destination for seasonal employees. As a result, non-EU workers account for well over half of our recruitment. The challenge now is to ensure we can continue to meet staffing needs for the coming winter season while operating within the constraints of the EU’s Entry/Exit System. What response have you received from the Spanish Embassy or the European authorities regarding the impact of the Entry/Exit System on the recruitment of non-EU workers? Have any alternatives or different recruitment models been proposed? The overseas recruitment programme has been developed jointly by Andorra’s Ministry of the Interior and Ministry of Labour. It is based on a model facilitated by the Spanish Embassy, working with the relevant Spanish ministry, drawing on Spain’s experience in recruiting temporary foreign workers. The model was adapted for Andorra and, since 2025, we have been working closely with the Ministries of Labour and the Interior, as well as representatives of the sector. That collaboration resulted in the overseas recruitment programme, whose implementing regulations were published on 27 July. The programme is based on amendments to the Qualified Immigration Act and allows employers to recruit workers from selected countries outside the European Economic Area, primarily in Latin America. These workers will be able to work in Andorra for up to nine months. Employers will be required to cover 50% of both the inbound and return travel costs and guarantee accommodation throughout the workers’ stay. Workers will be eligible to return under the programme for up to three seasons. From the fourth season onwards, they would become subject to the general quota system. Is it true that there will be restrictions for people who do not speak Catalan? Not at the moment. For now, the authorities are taking a flexible approach to the language requirement. We believe Catalan must be protected, but we also have to recognise the challenges involved in recruiting staff. Any new requirement needs to be introduced gradually and with an appropriate transition period. It would not be entirely reasonable to expect someone who is only allowed to stay in Andorra for just over half a year to reach a specific level of Catalan during that time. We fully support protecting the language, but it should be promoted through encouragement rather than obligation. People will be far more motivated to learn Catalan if they know they will have the opportunity to remain in Andorra in the future and if they are given the necessary tools to do so. How many people come to Andorra each year to work on seasonal contracts? Last year, the Government allocated 4,995 seasonal work permits, of which 3,366 were for the hotel sector. The majority of those positions were filled by non-EU workers rather than EU nationals. If workers from the European Union have to replace those from other countries, labour costs are likely to increase. Could this ultimately lead to higher hotel prices? By how much do you expect prices to rise next season? As the Hotel Association, we cannot predict exactly how prices will evolve. The sector operates on a dynamic pricing model. If bookings continue to come in early—as I expect they will, given the strong market conditions last year—hotels will be able to adjust prices further in advance, improving both rates and overall business performance. Do you risk seeing hotels forced to close, or operating with reduced services, because of staff shortages? Yes, that risk remains. We came very close to such a situation this summer, when the seasonal quota was exhausted in just 22 days, raising serious concerns across the sector. So far, the Government has not announced an additional winter quota. At the same time, we still do not know the size of next winter’s quota or how it will be allocated. Together with the other associations representing the hospitality industry, we are calling on the Government to provide greater certainty and announce quotas earlier. In our view, both the winter and summer quotas should be established for the entire year. That would enable businesses to adopt a year-round recruitment strategy and plan their workforce more effectively and with greater certainty. To what extent is the housing shortage limiting the hotel sector’s ability to attract workers? Have you seen candidates accept a job offer only to turn it down because they cannot afford accommodation? This is not just an issue for the hotel sector. More broadly, Andorra needs to attract talent and people who want to work here, but housing remains one of the biggest obstacles they face after securing a job. Finding employment is only the first step. The next question is, “Where am I going to live?” For many people, that hurdle proves too difficult to overcome, preventing them from taking up the job they have been offered. Even for those who do relocate, housing costs place an increasingly heavy burden on their finances. The hotel sector does have one competitive advantage: some establishments are able to provide accommodation for their employees, although this is not enough to cover the entire workforce. Over the past year, many hotels have expanded these efforts. Some have converted additional space within their properties into staff accommodation, while others have rented apartments or, in some cases, entire buildings, to house employees. This gives the hospitality sector greater flexibility, but it also represents a significant additional cost for employers. How do you collect and analyse occupancy data from your member hotels? We maintain a database and communicate with our member hotels every week. Through a secure online system, they submit their occupancy data confidentially. We then process the information using dedicated software to produce weekly, monthly and annual statistics. What indicators do you use to assess the outlook for the winter and summer seasons? Hotels begin preparing their action plans almost as soon as one season ends. As booking trends evolve, they adjust those plans accordingly. As an association, we remain in constant contact with our members, who keep us informed about business conditions. We also use data from Andorra Turisme and the Department of Statistics. Combining these sources gives us a comprehensive view of market conditions and overall sentiment across the sector. How has hotel occupancy evolved in recent years, and what trends are you seeing among visitors to Andorra? The outlook for July, which is coming to an end, is positive. We expect occupancy to be around two percentage points higher than last year. July 2025 closed at 66%, while this year occupancy is likely to reach around 67.5%. The forecast for August is in line with last year’s performance. That is encouraging, particularly given that August 2025 ended with an occupancy rate of 83%. We had already anticipated this several months ago. We expected a strong summer because, given the current geopolitical situation in Europe and other parts of the world, Andorra continues to be viewed as an attractive destination. Looking back at the winter season, however, overall results did not surpass those of the previous year, mainly because the season was shorter. The ski season ended during the first week of April, while our statistics cover the period through 30 April. Once the ski resorts close, occupancy falls sharply, which has a significant impact on the overall figures for the season. How does this behaviour compare with that of Andorra’s main tourism markets in the Pyrenees, particularly France and Spain? The French market has shown growth during the spring and summer months, and we are also seeing a significant presence of French visitors, as is traditionally the case during the summer season. We should bear in mind that, on the French side, many establishments close during this period, and French visitors often tend to make a journée – a day trip to Andorra without staying overnight. By contrast, the Spanish market has a stronger tendency to stay overnight. Should employment data and tourism trends influence decisions on major infrastructure projects planned for the country, such as a railway connection or airport? I believe it is essential to consider the importance of tourism to Andorra’s economy. I am not saying this simply because I represent the sector, but because hospitality and tourism account for more than 40% of the country’s GDP. Until now, the development of national infrastructure has taken tourism activity into consideration. However, I believe we now need to rethink the model. It is not simply about building more infrastructure to attract more visitors. The objective should be to continue moving towards a less seasonal tourism model. We cannot continue concentrating more visitors only during the winter season or in August. The figures speak for themselves: occupancy can rise from 66% in July to 86% in August. We need to achieve a better balance throughout the year. The priority now is to adopt a strategic approach to reduce seasonality. Traditionally, Andorra has been positioned as a mountain and shopping destination, but we have successfully diversified our offer through cultural, gastronomic and wellness tourism. These segments should help us strengthen activity during the shoulder seasons. This spring, for example, occupancy levels in May and June were relatively weak compared with last year, partly due to the seasonal nature of our destination. A very strong Easter period can make the following months of April, May and June more challenging in terms of demand. Our association remains fully open to contributing to the discussion and analysis of these issues, many of which are already being addressed by the Government. Regarding service quality, how do you assess the ability of Andorran hotels to compete with five-star establishments in major European capitals? A distinction needs to be made between a five-star hotel in a major European capital and a five-star hotel in a country such as Andorra, as well as between international hotel chains and independent establishments. Andorra is making a significant effort to offer the same standards of service and quality as leading hotels around the world. However, we cannot ignore that, over the past one or two years, the sector has faced increasing difficulties in attracting talent. This is directly linked to the issues we have already discussed: pressure on the housing market and growing competition for qualified professionals. Looking ahead to the Association Agreement and the future of the sector, could Andorra’s hospitality industry lose competitiveness compared with other destinations in the Pyrenees? Based on the information we have received during the negotiations on the Association Agreement, the impact on Andorra’s hotel sector is not expected to be particularly significant compared with other areas of the economy.The post Andorra’s hotels still face closure risk amid staff shortages first appeared on All PYRENEES.