Labor Shortage Policy Business Report
Added on 2020-04-07
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Proposed Labor Shortage Policy 1BUSINESS: PROPOSED TOURISM LABOUR SHORTAGE POLICY IN AUSTRALIANameCourseTutorUniversityCity/stateDate
Proposed Labor Shortage Policy 2IntroductionThe tourism industry is one of the largest exports sectors in Australia and contributes around $40 billion to the general economy of the country. The sector is said to largely benefit from thecontinued economic growth in the international source markets as well as the falling Australiadollar value. Our agency, the Tourism Australia is an Australian government agency that isresponsible for promoting the country to the global tourism world as a tourism destination forbusiness and leisure (Wakelin-Theron 2015, p. 248). The major objective of the agency is toincrease the economic benefit realized from the tourism industry and also support the industrygrowth strategy 2020 which aims at growing the industry overnight expenditure to $ 140 billion.The agency is active in 16 Australian tourist markets and aims to grow demand for tourismexperiences by promoting a unique experience and attributes in the industry which will enticepeople to visit. With the assumption of continued economic growth, political stability and favorable climate theindustry is projected to grow at an estimated growth rate of 6 percent annually (Moid & Alam2016, p. 37). Such growth will, therefore, contribute to increased demand for skilled labor forcein the industry. However, the industry is reported to have a shortage in its labor market with acurrent need of over 36000 employees in the care and restaurants departments. Lack of skilledand experienced labor force has affected the quality of service provision in the industry. Thisstudy, therefore, seeks to develop a proposal by the committee formed by the Tourism Australiaagency, for the development of a policy which will help in addressing the labor and skills issuesaffecting the industry and how its implementation will help the industry realize its developmentstrategy for the period 2015 to 2020.
Proposed Labor Shortage Policy 3Background context of the labor shortage issues in the industryAccording to the Australian Tourism Labour Force Report of 2015, the Australian hospitalityand tourism industry is reported to experience labor or skill shortage. In their report it is said thatit has become harder than before to find and recruit the required quality and skilled employeeswho can be relied upon by the industry to meet the skill standards of various positions, fit in thekitchen team as well as adapt to the culture of the venue and stay for a longer term (Argent et al.2014, p. 311). Such concerns have led to many arguments based on the reasons why the industryis not attracting the relevant skilled labor force or even retaining the existing ones for a longerperiod.The report provides that an additional 123 000 workers will be needed by the year 2020 in thetourism and hospitality sector. Such a shortage in the industry is also believed to affect or have agreat impact on the productivity and growth of the industry if appropriate measures are not putinto place. Also according to the report released by Deloitte Access Economics, there was alabour gap identified of 38 000 workers currently in the industry in 2015 a number that isestimated to increase to 123000 worker shortage as reported by the Australian Tourism LabourForce Report by the year 2020 (Wortman et al. 2015, p. 142). Of this estimated amount, 56 600which translates to 48 percent of the total is estimated to be the likely demand for skilled workersand also reports an increased strong demand for chefs, café, and restaurant managers. Therefore,labor shortage is said to be the greatest challenge facing the industry whereby the shortage ofskills is said to slow down the productivity and also dampens the growth aspects of the industry.The need for more skilled labor force in the industry is due to the fact that due to the increaseddemand, the industry is expected to deliver exceptional visitor experiences and customer services
Proposed Labor Shortage Policy 4in order to meet the expectations of the discerning international visitors. The industry has aprojected target of doubling its overnight expenditure to $ 140 billion by 2020 and fearssurrounding the industry claim that lack of skilled labor may affect the industry and prevent itfrom realizing such goals or targets (Stoeckl et al. 2014, p. 792). A report by the Deloitte Accesseconomics provided that the reported inability to find workers with the right skills was seen to bethe main reason why the industry faced difficulties in recruiting staff. The Australia Departmentof Employment in 2015 projected an increase in employment growth in the café, restaurant, andtakeaway food services sector. Therefore the increased demand has been the most contributingfactor to a labor shortage in the industry.Labour shortage in the industry has also been having also resulted from lack of trainedworkers in the industry or the number of existing qualified and skilled workers cannot meet theincreasing demand in the industry. Lack of workforce development initiatives in the industry hasled to increased labor shortage gap. Such workforce development initiative focus on all aspectsof a business workforce and ensure or promote the recruitment of staff with the right skills,experience and attitudes, provides career progression opportunities, advocates for goodremuneration packages for employees as well as training and development to shape the existingskills (Dobbs & Madgavkar 2014, p. 203). The industry is differentiated from its competitorsglobally on the basis of the quality of services provided to the tourists and therefore the increasedneed for the skilled labor force.The Australian government was also reluctant on outsourcing employees from other nations onimmigration of labor force through immigration ban policies. There is a call therefore for thegovernment to regulate its policies by allowing more visas by considering overseas staff to caterfor the existing labor force gap in the market (García & Hormiga 2017, p. 216). The report by
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