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Labor reform in Colombia: the silent blow to the hotel industry

Introduction

The hotel industry, by its very nature, operates non-stop, serving guests 24 hours a day, 7 days a week. However, recent labor reforms in Colombia propose changes that could significantly alter this dynamic. With the modification of night and Sunday surcharge schedules, hotels' operating costs could increase, affecting their profitability and sustainability.


Changes in surcharges: a new labor scenario

The labor reform proposes that the night shift begin at 7:00 p.m., instead of 9:00 p.m., maintaining a surcharge of 35% on the ordinary value of the hour worked. In addition, the surcharge for work on Sundays and holidays will increase progressively from 75% to 100% by 2027.

These changes represent a direct increase in labor costs for sectors that operate continuously, such as the hotel industry. The need for staff during nights and weekends is inherent to hotel service, which means that these additional surcharges will have a significant impact on payroll.


Financial impact on hotel operations

The hotel industry is one with tight margins and high competition. The increase in labor costs due to the new surcharges could reduce the profitability of hotels, especially those that cannot pass on these additional costs to customers without affecting their competitiveness.

In addition, uncertainty about future labor changes is causing caution among investors, which could slow down the development of new hotel projects in the country.


International comparisons: lessons from other markets

In countries such as Spain, labor legislation allows for a certain degree of flexibility in sectors such as hospitality, recognizing their need to operate continuously. This includes specific agreements on surcharges and working hours that balance workers' rights with the economic viability of businesses.

Colombia could consider similar models, adapting its legislation to recognize the particularities of sectors that, by their nature, require extended hours and work on non-working days.


Adaptation and resilience: the way forward

The hotel industry has historically demonstrated a great capacity to adapt to economic and social changes. Faced with the new challenges presented by labor reform, it is essential that the sector seek strategies to optimize its operations, such as implementing technologies that improve efficiency and renegotiating labor agreements that take new conditions into account.

It is also crucial that dialogue between the private sector and the government continues, seeking solutions that protect workers' rights without compromising the viability of companies that generate employment and economic development.


Conclusion

I have witnessed how the hotel industry adapts time and time again. We have survived economic crises, pandemics, technological changes, and profound social transformations. But each of these transitions has required something essential: conditions that allow us to continue operating.

The labor reform currently under debate has good intentions, but in practice, it may lead to the opposite of what it seeks to achieve. In informal industries, it will likely further encourage tax evasion and hiring without guarantees. And in the hotel industry—especially in hotels that already operate on narrow margins—the most likely result is a reduction in payroll to sustain operations. Not because they want to, but because there is no other option.

As a sector, we must adapt, of course. But we must also have a voice to warn when new rules could push us to the limit. Protecting workers also means protecting existing jobs and those that could be created in the future.


Alejandro Gonzalez
Founder of Blackroom

Sources:Infobae
Written by
Alejandro Gonzalez Uribe

Co-founder of BLACKROOM and MACCA. I'm obsessed with turning good ideas into profitable hotels—built from the user's desire and the investor's logic

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