More skilled workers required for Tourism to 2020

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Australia has 750,000 people who are unemployed with nearly 300,000 of those under 25. Tourism has great opportunities to help these people get back into the workforce and work in a growing industry.
Australia has 750,000 people who are unemployed with nearly 300,000 of those under 25. Tourism has great opportunities to help these people get back into the workforce and work in a growing industry.

The Australian Tourism Labour Force Report released on 4 November 2015 has highlighted the need to focus on how best to meet the critical skills and labour force needs for one of the Australian tourism sector over the next five years, the Australian Chamber of Commerce and Industry said recently.

The research undertaken by Deloitte Access Economics and released by the Minister for Tourism, Richard Colbeck, indicates that there is a current shortage of around 38,000 positions, and in the absence of any change in policy or industry initiatives it is expected that 123,000 new workers will need to be sourced in tourism by 2020, being 30,000 skilled jobs and 63,000 unskilled. Although employers are reporting it to be easier in 2015 to source labour than in 2011, reflecting factors such as the mining industry coming off the boil, the big issue that the survey highlighted was the problem in accessing labour that was sufficiently skilled and experienced.

Kate Carnell, the Australian Chamber CEO, said there were some issues of great interest arising from the survey of employers "I was particularly encouraged by employers reporting that they are increasingly reaching out to mature age workers to fill their labour force needs, followed by our young Australians. These sources of new labour far exceeded other sources of labour to fill shortages, such as overseas workers, in almost all jurisdictions. In fact the survey showed that overall, there had been a substantial reduction in the use of workers from overseas from 13 per cent to 10 per cent of the total labour force. Even though cafes, restaurant and accommodation employ more overseas workers than the tourism average, more than 60 per cent of businesses in those industries reported exploring mature age workers as an option."

The report also brought into sharp focus the fantastic opportunities that tourism creates for the Australian economy. Since last reported in 2011, macroeconomic conditions have taken a turn for the better with the Australian dollar falling from its heights of 2011, encouraging international tourists to visit Australia and making domestic travel more attractive for Australian residents. Generally, the economies of Australia's major international markets have been steadily improving leading to more overseas travellers to Australia. In particular, visitor nights from China are expected to grow strongly to 2020.

"Reports such as these remind us all what a major employer tourism is. Over 550,000 people are currently employed directly in tourism, and this is predicted to grow by 15% to almost 640,000 by 2020. Australia is very fortunate to have a strong tourism sector as jobs across tourism range from the highly skilled hotel managers and chefs to both permanent and seasonal jobs in waiting and kitchen attending that provide a start in the workforce for some so many Australians. We need to be very mindful of the warning in the report relating to the potential for substantial skills shortages and its likely impact particularly on productivity."

The report states: "While skills shortages have the potential to act as a direct constraint to the sector's ability to meet growing demand for the Australian tourism experience (where positions are remaining unfilled), it is more likely they could manifest in reduced productivity. Productivity is adversely affected where the workers filling employment positions are not equipped with the skills, expertise and/or capability to perform their role."

Australia has 750,000 people who are unemployed with nearly 300,000 of those under 25. Tourism has great opportunities to help these people get back into the workforce and work in a growing industry. It is essential that government works with industry to ensure appropriate and affordable training opportunities are available and there is sufficient flexibility in workplace relations laws to make it easier of businesses to employ.

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