2. Trends in Tourism Labour Market Peter Huber, Praha, June 10, 2009

3. Motivation  Despite high unemployment and special regulations tourism is repeatedly confonted by labour market shortages.  Issues: Where are shortages largest? How do firms react to shortages? How will shortages develop?  Data From a study of the Austrian hotels & restaurants sector, based on analysis of sectoral data and a questionaire among 3.200 Hotels- and Restaurants :

4. Causes for Shortages  Indications of Mismatch 2008 the average unemployment rate in tourism was 13,7%, additionally there were special stipulations to allow for more seasonal foreign labour from abroad despite this there were substantial complaints on labour supply shortages  Indications of declining attractiveness of Hotels and Restaurants as an employer Workers often leave hotel and restaurant sector in ages between 35-40 Often complints about high mobility requirements & seasonality

5. Where are shortages largest? 1=great problems, strongly rising demand, 4=no problems, declining demand

6. Where are shortages felt What will be needed  Larger firms and firms offering full year employment have lower problems filling vacancies  Shortages are more strongly felt when jobs is very important for the firm  Language knowledge, Innovation & Service Orientation and capability to work independently are most important capabilities for employers  Aside from this increaseing demand for certain „niche“ skills Kitchen – vegetarian and other special foods Service – wines (and cheese) Management – marketing Others – wellness, cosmetics, child care

7. Firm Strategies -Lowest scarcity, few concrete strategies, little knowledge of needed capabilities - Average size and quality -Large scarcity, concrete strategies to combat these, good knowledge of needed capabilities - Mostly large enterprises with high quality - Large scarcity, want to recruit abroad, no special capabilities needed, - Mostly medium to larger sized, medium quality firms, with strong seasonality located in winter tourist areas - Large scarcity, no strategies but no special capabilities needed - Medium sized firms of medium quality, with lower seasonality, usually located outside winter tourist areas - Intermediate scarcity, no strategies,no knoweledge of capabilities needed, many do not know answers - Low quality and very small firms

8. Future Development (pre Crisis)

9. The Impact of the Crises  Reduction in almost all indicators on travell activities, sharp decline in expected turnover  Forecasts of tourism imports of the EU15 2009: ~ -11.5% 2010: ~ -5%  Duration of crisis will also be critical for structural change in tourism

10. Some Policy Conclusions  Central strategy to reduce labour market shortages in tourism has to focus on increasing attractiveness for workers Increasing productivity Reducing fluctuation (reducing seasonality)  Increased recruiting of Older workers Female workers  Supportive policy environment (foreign born workers, mobility issues, co-operation)

11. Thank You for Your Attention !