“I know that luxury is a cursed word in the Portuguese lexicon. As a result of 45 years of a monolithic and stunted vision, we still live under the teaching that we must be poor to be happy,” says João Santos, COO of WYgroup.

Portugal has transitioned from a forgotten corner of Europe to a country that is now in vogue. We welcome annually twice our population in visitors, and we are starting to complain that we are receiving too many. We forget that the tourism sector, both directly and indirectly, now represents the largest share of our GDP and generates a substantial number of jobs. Many will argue that these jobs come with low wages. We’ll get to that.

Por outro lado, e graças a esse fluxo de visitantes, alguns dos locais do nosso país começaram a ser cobiçados e desejados. Essa procura gerou modificações e alterações nas nossas cidades e, goste-se ou não, se hoje temos cidades mais bonitos e arranjadas, isso deveu-se ao turismo e a nada mais.

Then, investments—both national and international—started to emerge. The demand for previously remote locations led to new developments and profound transformations. Perhaps the most striking example is the Comporta area and everything that has been born and is still emerging there. Protests began as the once popular and deserted area of 20 years ago transformed into an exclusive, bustling, and highly valuable place. Some feel excluded, while others seek exclusivity.

And here begins the dilemma.

On one hand, it is important for tourism to maintain its vibrancy and economic dynamism, but we cannot sacrifice our cities and places to its immense pressure. On the other hand, when we create something exclusive and low-density, there are those who complain about not being able to enjoy these spaces as they did in the recent past.

I know that luxury is a cursed word in the Portuguese lexicon. As a result of 45 years of a monolithic and stunted vision, we still live under the belief that we must all be poor to be happy. Magazines and gossip columns have done their part, showcasing our ‘celebrities’ in their luxurious homes, cars, and vacations. While some people seek ostentatious luxury and others prefer quiet luxury, we feel ashamed of luxury.

But most importantly, beyond the obvious need to de-dramatize the word, is to view the luxury and high-value segments not through the lens of public opinion or certain political forces, but by the genuine economic and transformative value these segments can bring to our country.

Given our geography and economic model, we are closely tied to small production runs. Due to our entrepreneurial model, we are risk-averse and prefer to manufacture for other brands rather than for ourselves. However, we know how to produce and we do it well, across a wide range of sectors.

Luxury markets can aid in this economic transformation by allowing our small-scale industries—such as wine, for example—to be effectively valued, helping to position the country as a producer of high quality rather than large volumes of mass-produced goods. Perhaps we need fewer vineyards but of better quality. The same applies to olive oil. We don’t need intensive olive groves; we need ultra-high-quality production that enhances the excellent product we are capable of producing.

The same applies to tourism, footwear, tanneries, jewelry, and many other sectors. It’s not about producing more, but about producing better and with greater value. It’s about maintaining the destination and the country as synonyms for well-crafted, artisanal, high-quality, and meticulously detailed products. Is it easy? No. But if we want to increase productivity and value in a way that allows us to raise wages and have a more sustainable territory, the path cannot be one of quantity, but rather of producing less, but of exceptional quality.

Finally, it is important to clarify that I do not advocate for creating a country where only the wealthy have access, but rather for building a stronger and more sustainable economy that benefits everyone. By focusing on creating value, especially in sectors where we have the potential to stand out for quality and excellence, we will generate collective wealth that can be redistributed to ensure that access, in whatever form it takes, is a shared reality and not a privilege for a few. At that point, we will say that luxury will serve to include, making it Intelligent Luxury.

Article written by João Santos, COO of WYgroup, and originally published in ECO.