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In Short Supply: Future Labor Needs of Tourism Employers

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Presentation on theme: "In Short Supply: Future Labor Needs of Tourism Employers"— Presentation transcript:

1 In Short Supply: Future Labor Needs of Tourism Employers
Scott M. Meis President, SMMRA SECOND TEFI SUMMIT Teaching for the Future: Towards a Values-Based Framework for Tourism Curricula School of Travel Industry Management, University of Hawai’i 11-14 April, 2008

2 ? INDUSTRY LABOUR MARKET & TOURISM EDUCATION: ARE THEY RELATED?
TOURISM WORK = MULTIPLE JOBS, OCCUPATIONS, INDUSTRIES & CAREERS ? TOURISM WORK: Jobs? Occupations? Knowledge? Skills? Careers? TOURISM STUDY = MULTIPLE SUBJECTS & DISCIPLINES

3 PRESENTATION OVERVEIW
Tourism jobs & occupations Tourism labor force Tourism labor market outlook Industry impacts Management job requirements Tourism education implications

4 TOURISM JOBS? A job includes all the tasks carried out by a particular worker to complete her/his duties Work for an institution in one of 5 sector industry groups Work for the period of one year regardless of the number of hours Work for only three months equals ¼ of a job

5 Canadian Tourism Sector
1.8 million jobs in tourism (2006) 1.6 million persons employed Canadian Tourism Sector 10% of labor force 16% Transportation 266,000 23% Recreation & Entertainment 12% Accommodation 191,500 379,700 47% 3% Food & Beverage 775,200 Travel Trade Services 47, 900 Over 400 Occupations Management = 26% of jobs Source: Total Tourism Sector Employment in Canada: 2006 Update, CTHRC, 2006

6 TOURISM OCCUPATIONS A collection of jobs, sufficiently similar in work performed to be grouped under a common title Identified and grouped primarily in terms of the work performed, as determined by tasks, duties, & responsibilities of the occupation Factors include: processes used, equipment used, degree of responsibility, complexity of work, skill levels required & services provided

7 LARGEST OCCUPATIONS 13.7% 12% 8.4% 6.5% FAST FOOD SERVERS
KITCHEN HELPERS FOOD AND BEVERAGE SERVERS COOKS RESTAURANT & FOOD SERVICE MANAGERS 228,100 199,650 139,700 108,670 Source: Total Tourism Sector Employment in Canada: 2006 Update, CTHRC, 2006

8 MOST JOBS ARE LOW SKILLED - Only 10 percent have university degrees
Level of Schooling % Canadian Work Force % of Tourism Total Employment Less than grade nine 4.0 Grades 9-13 31.4 42.6 Trade certificate 3.7 2.7 Some post secondary 41.7 40.7 University degree 19.2 10.0 Also 25% of tourism labour force attend school on full or part time basis, vs 15 % in overall CLF 54% in the 15 to 24 age range attend school on a part time basis vs 46% on overall CLF Tourism Provides Employment Opportunities Youth to Help Pay for Higher Education Source: Total Tourism Sector Employment in Canada: 2006 Update, Canadian Tourism Human Resource Council, 2006.

9 TOURISM WITHOUT WORKERS: A STRATEGIC GROWTH ISSUE?
Labor shortages already felt by many tourism employers in Canada Canadian labor force growth rate decreasing to zero: -- lower fertility -- fewer young people entering labor force -- longer periods of education & training -- baby boomers retiring By 2015 all labor force growth from immigration Increasing competition for labor from other sectors Poor tourism sector competitive offer & image Source: Phase III Report: Industry Consultations to Inform the Development of a Labor Supply/ Demand Model for the Tourism Industry, Bristol Group, December, 2007

10 INDUSTRY RESPONSE -- R&D: MODEL & PROJECT SUPPLY/DEMAND IMBALANCES
Joint research and development project Canadian Tourism Human Resources Council and Canadian Tourism Research Institute of the Conference Board of Canada Goal: Model & project potential sector labor shortages Approach: three components: Baseline forecasts of industry demand & potential labor demand Baseline forecasts of potential labor supply to tourism sector Market adjustment mechanism – market clearing equilibrium model Source: Labor Shortages in Canada’s Tourism Sector: Draft Report, CBoC, 2008

11 Tourism Goods & Services Potential Demand 2005-2025 (Preliminary Results)
Growth Rate Growth Rate Annual Demand BY 2025 (1997 CAD $ millions) 4.6% Tourism Demand 2.2% 101,727 5.7% Domestic 2.0% 77,571 Foreign 1.5% 2.8% 24.156 Non-Tourism Demand 2.6% 2.0% 118,367 3.5% 2.1% TOTAL DEMAND 220,294 A 70% increase over 2005 at $130 billion CAD Source: Labor Shortages in Canada’s Tourism Sector: Draft Report, CBoC, 2008

12 Potential Labour Demand Canadian Tourism Sector 2005-25 (Preliminary Results)
Jobs in 2005 e Jobs by 2025 f Industry Group Accommodation 227,805 293,559 Food & beverage services 837,231 1,162,484 Recreation & entertainment 304,463 386,745 Transportation 238,070 300,667 Travel Services 45,443 58,763 TOURISM SECTOR 1,653,012 2,200,228 A potential increase of 33% Source: Labor Shortages in Canada’s Tourism Sector: Draft Report, CBoC, 2008

13 Preliminary Results of Potential Labor Shortage
Growing tourism labor supply and demand imbalance/gap Potential labour shortage of 348,000 jobs by 2025 Most in Food & Beverage industry Surplus in Travel Services Source: Preliminary Results, CTHRC’s Tourism Labour Supply/Demand Projections Model

14 Top 5 Potential Occupational Shortages 2005-25
(Preliminary Results) Jobs in 2005 e Jobs by 2025 f Occupation Groups Food Counter Attendants & Kitchen Helpers* 2,689 71,768 Food & Beverage Servers* 2,405 61,925 Cooks* 1,577 34,689 Bar tenders* 565 15,838 Restaurant & Food Service Managers 994 13,488 TOURISM SECTOR 24,595 347,974 * Figures combine labor shortages in food & beverage and accommodation industries. Source: Labor Shortages in Canada’s Tourism Sector: Draft Report, CBoC, 2008

15 INDUSTRY IMPLICATIONS
A multitude of job openings Growth in labor supply slows dramatically Prolonged supply/demand imbalance Rising compensation costs from increasing real wages Sector productivity expected to rise, but slowly Decreasing sector profitability Decreasing international competitiveness Source: Labor Shortages in Canada’s Tourism Sector: Draft Report, CBoC, 2008

16 POSSIBLE INDUSTRY RESPONSES
Competitive bidding war for workers Enhancing productivity Good human resource practices To create & retain more productive workers Education & training for adaptability, professionalism & leadership Technology improvements Product refinements to reduce labor without sacrificing service Increasing the availability of labor Increasing incentives for under-represented labor pools Increasing cooperation of government, industry and academe Source: Labor Shortages in Canada’s Tourism Sector: Draft Report, CBoC, 2008

17 TOURISM EDUCATION IMPLICATIONS -- AN OPPORTUNITY?
A multitude of job openings for your product -- graduates Increased industry interest in your product Potential for increased government recognition & support New research issues and opportunities

18 POSSIBLE RESPONSES OF TOURISM EDUCATORS
Focus on characteristic and specialized supervisory and management positions Align with industry occupational standards, certification programs & recognition programs Develop sector and career awareness strategies Promote employer recruitment, workplace learning & recognition Facilitate school-to-work-back-to-school transitions Focus curricula on core management competencies

19 CORE LEADERSHIP COMPETENCIES MANAGEMENT & EXECUTIVE OCCUPATIONS
Food & Beverage Manager Events Manager Golf Club Manager Executive Chef Small Business Owner/ Operator Director of Sales and Marketing Leadership, professionalism Administration Business and Strategic Planning Marketing Operations, Site/Facility Management Human Resource Management Comply with Legislation Financial Management Health, Safety and Security Retail Operations Source: Summary extracted & adapted from current Emerit (CTHRC) national occupational standards * Above summary extracted from current emerit national occupational standards

20 LEADERSHIP COMPETENCIES: Director of Sales & Marketing
A. LEADERSHIP 1. Motivate others (7 abilities) Ability 1.1 : Motivate staff Ability 1.2 : Provide opportunities for professional development Ability 1.3: Identify and provide instruction Ability 1.4: Identify and demonstrate a positive attitude Ability 1.5: Display a selling & marketing mentality Ability 1.6: Understand and reinforce teamwork Ability 1.7: Implement strategies for building effective teams 2. Know how to focus on success Ability 2.1 Describe how to focus on success Source: “National Occupational Standards, Director of Sales and Marketing”, Canadian Tourism Human Resource Council, 2005

21 LEADERSHIP COMPETENCIES: Director of Sales & Marketing, Cont’d.
B. ATTITUDE C. OPERATIONS, & FINANCIAL MANAGEMENT D. MARKETING E. STAFF (HUMAN RESOURCES) MANAGEMENT F. PROFESIONAL/PERSONAL DEVELOPMENT G. COMMUNICATIONS Source: “National Occupational Standards, Director of Sales and Marketing” , Canadian Tourism Human Resource Council, 2005

22 WHY IS TOURISM EDUCATION IMPORTANT?
Tourism service industries are labor intensive and dependent on strong service skills The best products (infrastructure, location, environment) can be developed The best branding and marketing can be implemented But, an adequate supply of motivated, informed & skilled labour is essential to deliver the product & create positive memorable experiences YOUR PRODUCT: Well educated, motivated, dependable new workers will be in high demand at entry levels for future industry leadership positions

23 Tourism Education: A Starting Point and Foundation of the Path to Professionalism in Tourism Occupations

24 Thank you for your interest & attention! Are there any questions?


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