(MU)VUCA Means: MEANINGFUL,universal, Volatility, Uncertainty, Complexity, and Ambiguity.

It is used to describe the reality in which we live today: the world changes at an extremely fast pace, it does not have a unique destination, it has several answers to the same question and with several facets.

This acronym comes from the American army to describe the different situations in a war context. Today, VUCA fits perfectly in what is today the Tourism industry in all its areas of activity, especially after an unexpected black swan* named Covid-19. In less than a few weeks, the industry that had pulled Portugal out of an economic crisis and reached record performance figures saw all its effort lost in a total closeout.

How companies will have to reinvent themselves to overcome this challenge:

VOLATILITY | Quick Changes

They also require prompt answers and a clear vision of a new reality. Companies will have to direct the purpose of their initiatives, adapting the business to the digital world. Now is the time, it cannot wait any longer. Tourists are at home, but the communication needs to continue, strengthening the emotional relationship. Hotels, restaurants, and other companies in the sector will have to make new approaches to the business and the market, taking creativity as the trigger.

UNCERTAINABLE | Unpredictable

We need to define flexible strategies that will be able to anticipate different possible outcomes. A new understanding needs to allow the construction of critical thinking. Review the SWOT analysis of each business to find the different matrices to define a plan. Agility in managing processes, improvement of the response time, and resolution of complex problems that may arise. Involve all teams on all solutions.

COMPLEXITY | Multidisciplinary

Clarity on the course to follow, maintaining a firm outlook while taking new risks. Working even better with teams and on their performance and skills, critical thinking, and cognitive flexibility.

AMBIGUITY | Multiple truths

Flexible strategies. Agility and a great capacity of negotiation, since the course will certainly be different from the past. Everything that Portugal had as added value in Tourism still exists good climate, gastronomy, cultural wealth, Nature, hospitality. We still have the same quality product that we always offer. Tourism in its essence only has to reinforce its image with Security. Use clear and transparent communication.

However, the term VUCA gets a new dimension today because there is the need to add the two letters M and U, forming MUVUCA.

MEANINGFUL | Sense of purpose, Sense in what we do

A more human and collaborative leadership. Each company, regardless of its size, can take advantage of this forced stop to look inside, (re)evaluate its purpose and work in a sense of belonging to their teams. Work on the capabilities of the employees and their valences, especially on resilience to face challenges and restart the cycle as often as necessary.

UNIVERSAL | Global Impact

Each action generates a consequence, no matter how small the size of the company. Tourism and its players have now a greater responsibility to become sustainable, to preserve the environment, and to cultivate good practices.

Tourism has already faced several challenges but has overcome them all, always stronger and more resistant. We are resilient. No one was expecting a moment like this, but it will be the opportunity to improve each destination, each hotel, each restaurant, and each tourism company, reinforcing the reasons why Portugal has been elected so many times as the best tourist destination in the world.

*Black Swan | Reference to The Black Swan book, published in 2007, that was written by the Lebanese essayist and researcher, Nassim Taleb. The Black Swan Theory describes an unexpected and rare event with many ramifications. This type of event is almost impossible to predict and is therefore difficult to mitigate. However, if observed from a certain distance, it seems obvious and inevitable.