1. The Role of Skills in Productivity Gains in the Tourism Sector- A View from the Private Sector in St. Lucia Presentation of Results of Hotel Survey & Background Paper By: Theresa Beltramo

2. Overview of Presentation Macroeconomic Overview & Role of Tourism Results of the Hotel Survey Social Contract Needed- The Way Forward Main Messages

3. Slowing growth... Per Capita Incomes (PPP) 1975-2004

4. Services main growth driver...

5. Tourism plays key role in economy

6. Increasing competition in tourism market

7. Recent High Growth is a Window of Opportunity… GDP Growth Rate (IMF) Unemployment Rate (latest year) 20042005*AdultYouth Antigua & Barbuda5.2%3.8%4%13% Dominica3.5%3.1%17%56% Grenada-3.0%0.9%9%24% St. Kitts and Nevis6.4%4.9%4%11% St. Lucia4.0%5.0%19%39% St. Vincent & the Grenadines4.3%4.9%15%39%

8. Section II Macroeconomic Overview & Role of Tourism Results of the Hotel Survey Social Contract Needed- The Way Forward Main Messages

9. Hoteliers agree that Skills of workers are not adequate… There is a clear mismatch between the skills demanded in the tourism sector and those supplied from the education system. There is a clear mismatch between the skills demanded in the tourism sector and those supplied from the education system.

10. Top Skills missing include… Professional Skills- in particular Management and Chefs Skills Soft Skills Entrepreneurship Skills or Self Initiative Ability to Learn

11. Other Feedback from Hoteliers in SL School curriculum in St. Lucia was seen as ill suited to meet the labor demands of the tourist industry. School curriculum in St. Lucia was seen as ill suited to meet the labor demands of the tourist industry. Of the training institutions in place, the overarching feedback was the training was too basic and not synthesized with the hotel sector’s needs. Of the training institutions in place, the overarching feedback was the training was too basic and not synthesized with the hotel sector’s needs. Training would be greatly improved if brought up to international standards and the private sector endorsed the need for accredited standards. Training would be greatly improved if brought up to international standards and the private sector endorsed the need for accredited standards.

12. Some skills training exists…

13. Source: Ministry of Education, St. Lucia Statistical Yearbook 2005. Total Enrolment In NELP for Academic Year 2004-2005

14. Labor Market Mismatch

15. Level of Education Among Hotel Staff

16. Deepening the impact of Tourism $ Cruise - $ $$ Enclave, All-Inclusive $$ Island as a $$$ destination $$$ Unskilled labor and poor physical infrastructure Value-added High quality labor, physical infrastructure and security (destination management) Few backward and forward linkages Wide variety of tourism services: restaurants, entertainment, tours OutputRequired inputs Quality of inputs

17. Section III. Macroeconomic Overview & Role of Tourism Results of the Hotel Survey Social Contract Needed- The Way Forward Main Messages

18. Social contract needed… Human Resource Development Needs Assessment Survey UWI

19. Do youth embrace tourism…

20. If you remember anything, remember this… Macroeconomic Overview & Role of Tourism Results of the Hotel Survey Social Contract Needed- The Way Forward Main Messages

21. Slowing growth per capita since 1980. Slowing growth per capita since 1980. Growth slowdown partially as a result of low relative productivity. Growth slowdown partially as a result of low relative productivity. Sea and Sand tourism is reaching its maturation and the OECS would benefit from moving to higher end services Sea and Sand tourism is reaching its maturation and the OECS would benefit from moving to higher end services Current high growth & WCC is an opportunity. Current high growth & WCC is an opportunity. Hoteliers in SL point to a skills mismatch Hoteliers in SL point to a skills mismatch Some skills training exists in SL put is too basic to meet the hotel sector’s needs and would benefit from accreditation on a regional level. Some skills training exists in SL put is too basic to meet the hotel sector’s needs and would benefit from accreditation on a regional level. Skills gained in secondary school must be relevant to the world of work. Skills gained in secondary school must be relevant to the world of work. The rural issue The rural issue A social contract is needed A social contract is needed

22. Thank You