The recent decision to increase the minimum wage in Colombia by 23% opens a conversation that goes beyond the headline. It is a debate the country needs to address responsibly, especially in labor-intensive sectors such as hospitality, where the impact of measures like this is direct, immediate, and structural. Since 2019, Colombia has faced a challenging economic context: cumulative inflation has approached 48%, while the minimum wage has grown by nearly 75% during the same period. This gap reflects a legitimate effort to protect workers’ purchasing power, but it also poses a significant challenge to the sustainability of the companies that generate formal employment. Hospitality is, by nature, a people-driven industry. Unlike other sectors, it is not easily automated. Hotels operate 24/7 and rely on human talent to guarantee service, quality, and guest experience. In an average hotel, payroll represents approximately 37% of operational costs. For this reason, an increase of this magnitude in the minimum wage has a profound impact on the financial structure of any hotel operation. The challenge becomes more evident when we analyze revenue behavior. In recent years, hotels have made significant efforts to adjust rates, recover after the pandemic, and respond to rising operating costs. However, rate increases have not kept pace with inflation and wage growth. The market sets clear limits: demand is price-sensitive, competition is intense, and higher costs cannot always be transferred to the guest without affecting occupancy and competitiveness. This imbalance puts direct pressure on business profitability. Narrower margins reduce the ability to reinvest, modernize assets, strengthen sustainability programs, and continuously improve the guest experience. In the long term, it also affects the ability to generate appropriate returns for investors who have trusted the Colombian hospitality sector. This concern is not isolated. Industry associations such as Cotelco Nacional and ANATO have warned that wage increases of this magnitude, combined with other recent regulatory changes—such as higher surcharges, the progressive reduction of the workweek, and rising utility costs—are significantly altering the financial planning landscape for the sector. In many cases, rates and contracts already negotiated for the coming years did not anticipate this level of increase in labor costs. At Grupo Germán Morales, we fully recognize the social value of improving the conditions of the people who make our operations possible. Our team members are the heart of our hotels, and their well-being is a priority. At the same time, we firmly believe that business sustainability is a pillar of social well-being: without viable companies, there is no stable employment, investment, or long-term growth. For this reason, rather than a critique, this is a call for a technical, open, and long-term conversation between the private sector, investors, and the government—one that seeks balance between three key objectives: protecting people’s income, ensuring business viability, and preserving the competitiveness of a strategic industry for tourism and the country’s economy. Colombia’s hotel industry has demonstrated resilience, adaptability, and a strong commitment to the country’s development. Today we face a new challenge that demands leadership, dialogue, and informed decision-making. The path is not simple, but only through a shared vision will we be able to build solutions that work for everyone.
