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Tourism Skills and Workforce Report
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24 August 2004 |
The preliminary results of new research into the skill and workforce needs of the tourism industry show the industry will need to pay close attention to its people in order to meet visitor growth forecasts. In October 2003 the Tourism Industry Association (TIANZ) and research partners ATTTO (Aviation Travel and Tourism Training Organisation), the Ministry of Tourism, HANZ (Hospitality Association NZ) and HSI (Hospitality Standards Institute) commissioned research agency BERL to forecast the tourism industry’s workforce and skill needs for the period up until 2010 - the period covered by the New Zealand Tourism Strategy 2010. Early results show the industry will need to employ an additional 4500 people per annum to meet projected visitor growth. That is 2.8 % additional people per year in either full time or part time positions to accommodate the projected annual visitor growth of 6%. In addition, people will also be needed to address turnover - those who either change jobs within the tourism industry or leave it altogether. Staff retention is averaging approximately three years and about 75% of those changing jobs remain within the tourism industry. The combination of these two factors means that an additional 8% of the tourism workforce is required each year simply to address job turnover. The Chief Executive of TIANZ, John Moriarty says the combination of growth and job turnover means that the industry needs to recruit approximately 11% of its workforce each year. TIANZ sees two immediate implications arising from this research. The average staff retention needs to extend beyond three years and boosting the career potential of the industry will add value to both employers and employees. “Some solutions to these issues include growing job content, maintaining competitive pay rates, increased efficiency and automation where justified, and recognition of and preference for tourism skills.” says Mr Moriarty. The association says there are good economic reasons for taking this research seriously. “The cost of recruitment extends well beyond advertising for staff - it also includes ‘coming up to speed’ on the job. An optimistic estimate for the cost of recruitment would be 25% of salary. If this is the case the industry has a huge efficiency incentive before it. The $45 m in recruitment costs that is needed for visitor growth is dwarfed by the $127 m that is needed simply to address staff turnover.” says Mr Moriarty. The next stage of research will identify specific job skills and knowledge within key tourism sectors and establish priority areas for action. TIANZ will publish the research throughout its sectors later this year and will establish action plans in all vulnerable areas. Ends |
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