Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry

This proposal aims to address the human resources skills shortage in Australia’s tourism industry, specifically in the hospitality sector. It discusses the challenges and issues facing the sector, the skills required, and the roles of the government and business community. The proposal also outlines specific goals and objectives to solve the labor and skills challenges.

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 1
PROPOSAL FOR THE PREPARATION OF LABOUR SHORTAGES IN AUSTRALIA HOSPITALITY
INDUSTRY
Name:
Course:
Professor’s Name:
University:
City (State):
Date:

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 2
Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry
Position Statement
The organization: Price Waterhouse Coopers
Level: Countrywide
Roles and responsibilities of the agency: Consultant on Labor Issues
Values and interests of the agency: To Provide the right human resources for the right jobs
Internal and external influences on the agency: None
Specific goals and objectives of the proposed policy:
a) Solve the top statewide labor challenges which are:
 Reduction of red tape for the operators within the tourism industry;
 Find new sources of the workforce within the society;
 Attract employees during high season;
 Improve how Government employment programs serve the tourism industry;
 Improve the perception of the young generation on the industry as a career.
b) The specific goals are to solve the skills challenges which include:
 Develop the skills of workers, especially in customer service;
 Ensure that the delivery of training programs required by and relevant to the industry;
 Build targeted skills that support modern tourism industry;
 Improve access to and awareness of government training programs
 Strengthen the partnerships between the tourism industry and the education and
training providers.

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 3
 Improving the training culture in the industry (Zagonari 2009).
How will your plan address these?
The plan will address these challenges through the development of strategies that can
address both the labor challenges and skill set challenges. The strategies will involve
collaboration between the government and the other stakeholders, especially the players in the
tourism sector. The strategies will focus on attracting quality staff to the tourism industry and at
the same time get them access to the training opportunities offered by the government
(Stergiou, Airey, & Riley 2008).
Background Context
Challenges/Issues facing the sector
The tourism industry in Australia faces various human resources challenges especially
regarding the availability of skilled labor. Tourism industry refers to all the activities
surrounding the consumption of goods and services by visitors (Australian Bureau of Statistics,
ABS 2008). The tourism industry has many functions including earning foreign exchange for the
country (Dwyer 2011), providing a source of employment and income (Murthy 2008). The
process of earning of foreign exchange to a country and providing sources of income to the
citizens ultimately lead to economic development in a country (Iankova, Hassan, & L'abbé
2016). Australia’s tourism industry has bravely faced and weathered various challenges over the
last few years including September 11th attack in the US, the Gulf war, the 2008 world economic
meltdown and the Asian Financial Crisis. Low-cost airlines and cost-cutting measures instituted
by the government are largely responsible for the resilience in the tourism industry in Australia.

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 4
However, the cost-cutting measures severely affected the labor sector and the skilled worker's
shortage has persisted to date (Stergiou, Airey, & Riley 2008).
Geographical delimitation/focus: Countrywide and the location of the tour operator are either
regional or in the cities which is important as the seasonality aspect of the tourism industry is
felt more severely in the regions than in the cities
Relevant employment issues
Another factor affecting the human resources in Australia’s tourism sector is the
regional dispersion of the tourism operations. Some operators concentrate their business in the
city while the other operators are found in the various regions across the country. The location
of the tour operator either regionally or in the cities is important as the seasonality aspect of
the tourism industry is felt more severely in the regions than in the cities (Baum 2008).
Issue drivers
 Seasonality
 Government policies and industrial practices
 Young generation which considers life-work balance and recognition more important
than money. The young generation is averse to working in the industry.
Examples from research
An example that shows the magnitude of the problem is the case of a popular tour
operator who has resorted to employing foreigners and even enabling them to acquire
citizenship as they are the only qualified people who are ready to work in her tourist
establishment.
Importance of the problem to warrant a new policy

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 5
The whole tourism industry faces stiff challenges regarding skills shortages, but the
problem is more pronounced at the hospitality subsector (Australia. Department Of Education,
E. A. W. R. O. O. R. S. A. J. 2013). The tourism sector analysis faces challenges due to its
fragmented nature, a function of the immensity of the industry. Tourism Industry touches and
interacts with many industries and sectors the economy and segregating the aspects that
constitute the tourism industry is a tall order (Leiper 2008). Furthermore, the industry
operators differ in a scale ranging from individual operators to multinational corporations with
different and unique human resources issues to grapple with, including human resources
strategic plans, training budgets and career progression (Whitelaw, Barron, Buultjens,
Cairncross, & Davidson 2009).
Seasonality has further implications in the human resources planning and development.
Seasonality ensures that it is virtually impossible to employ standard principles in human
resources such as employing people on a permanent and pensionable basis (Badri & Ji 2015).
Rather, tour operators engage employees on a need-basis and let them go when the demand
for their services has diminished. The employees might not be available the next time they are
needed, and the employers will have to get other employees, train them and deploy them for
service (Leiper 2008).
Seasonality also affects the tourism industry through the increase in the cost of
operations. During low seasons, the operators are hit with highly volatile operating costs
affecting the resource allocation modules and most operators resort to reducing the number of
staff in their employment (Whitelaw, Barron, Buultjens, Cairncross, & Davidson 2009).

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 6
Research indicates that the seasonality of the industry is the main culprit in the high
turnover of management staff in the sector with some regional operators recording as high as
59% turnover rates in their management staff. To compound the human resources issues, the
nature of work demand a certain type of people such as one who will not be affected by the 24-
hour nature of the work, and one who does not have a problem interacting with people of
different cultural backgrounds. Also, the industry demands excellent interpersonal and
communication skills (Kandasamy & Ancheri 2009).
The human resources problems in the tourism industry in Australia affect both the hiring
and retention of personnel. The various factors affect the hiring decisions of the tour operators
as they spend a lot of money sourcing for skilled employees only to lose them during the low
seasons (Robinson & Beesley 2010). The seasonality of the employment in the tourism sector
has created the perception in many Australian’s minds that working in the hospitality industry,
and specifically the tourism sector is not a career and most work in the industry while studying
for other pursuits (Davidson, & King 2008).
Skills Required
The tourism industry is varied with different skill sets required in different sectors. All
the sectors in the industry need varied and specific skills which make the work of developing a
comprehensive curriculum for the industry a nightmare. The skills range from numeracy skills to
the intra and interpersonal skills necessary for the interaction with the customers.
Interpersonal skills on their part encompass many other skills including communication skills,
leadership skills, emotional intelligence, critical thinking skills and problems solving skills. The
educational needs of the industry are not in sync with the needs of the industry. The educators

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 7
do not seem to understand the current needs of the industry, and the skills imparted on the
hospitality industry graduates lack the necessary skills that they need to perform at their
workplaces (Baum & Szivas 2008).
Industry Factors
Over the years, the tourism sector has gained a poor reputation as an industry that
employs low-skilled labor with poor pay. At the same time, the industry is not known to provide
life job balance and only pick up people when they need them and dump them as soon as the
high season ends. The problem gets worse with the changes in the job expectations of the
current graduates which emphasize other social factors other than money as necessities in a
job. The young generation considers life-work balance, recognition, career progression as more
important to them than just a good salary (Richardson 2009).
Employee Perceptions
The generation change and other social changes have an impact on the expectations of
the young graduates which most often proves to be contrary to the industry’s practices. A
young graduate expects to be promoted within the first two years of joining employment. Delay
or non-existent career progression makes it difficult for the employees to stick to the tourism
sector. Also, the graduates in the current generation are socially orientated, and they need to
feel that they are recognized and that they are involved in the decisions affecting their work
(Chen & Choi, 2008).
Government Policies
In the industrialized countries like Australia, the government has allowed migrant who
provides cheap labor meaning that highly skilled personnel natives to the country have no

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 8
opportunities. Over time, the trend of employing migrant workers at minimum wage
encourages the industry players to neglect training and career development of their workforce.
Also, there are unfair dismissal laws, and the employee would rather find a job elsewhere
rather than in the tourism industry. Also, few employees are motivated enough to invest in
skills that would serve the industry while others are disillusioned by the incongruence between
their expectations and the reality at the workplace that they quit and find other sources of
income (Whitelaw et al. 2009).
Statement of Need
Why is the plan needed?
The plan is needed because there is a need to address the human resources skills
shortage in Australia’s tourism industry. The hospitality and tourism industry faces many
challenges regarding skills shortages. The tourism sector analysts and education providers face
challenges due to the tourist industry’s fragmented nature, a function of the immensity of the
industry (Richardson 2009). Tourism Industry touches and interacts with many industries and
sectors the economy and segregating the aspects that constitute the tourism industry is a tall
order. Also, the industry operators differ in a scale ranging from individual operators to
multinational corporations with different and unique human resources issues to grapple with,
including human resources strategic plans, training budgets and career progression (Magnini
2009).
Government and Business’s roles
The government has varied roles in the tourism industry, and in particular in ensuring
that there is enough skilled workforce in the industry. First, the government policies ensure that

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 9
the tourism sector in Australia remain vibrant with tourists pouring into the country and
bringing with them the much needed foreign exchange (Solnet & Kralji 2010). The government
must ensure that there enough skilled and well-motivated workers to serve the tourists
otherwise the industry will not be sustainable. Secondly, the government policies should ensure
that the industry is regulated regarding the people employed and their welfare including
requisite skills. Tourist operators are I the business to make money, and if more profits can be
made through cutting corners and employing immigrants and paying them minimum wages,
then that is what they will do. The government needs to intervene to ensure that the people
employed, whether immigrants or natives are qualified and are paid commensurate wages for
their labor, thus making the industry attractive to skilled employees. Third, the government
should fund research on the skills needs of the tourism industry to develop a curriculum that is
in sync with the needs of the industry.
On its part, the business community has a major role to play in the process of attracting
and retain qualified personnel in the industry. Some researchers have argued that many tour
operators cannot do their research while others are unwilling to take up current knowledge and
incorporate it into their management activities (Cervera-Taulet & Ruiz-Molina 2008). However,
research findings indicate that that position is changing. Managers and owners of SME are
actively sourcing information to help them manage their resources better in the face of hard
economic times (Bonsall 2008). When managers learn and employ it in the management of
their businesses, they transfer the same to their employees. The interns can gain the acquired
and applied knowledge from their employers and later transmit the same to their future
employers (Breakey, Robinson, & Beesley 2008).

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 10
The stakeholders
The stakeholders in the alleviation of the shortage of skilled workers in the tourism
industry in Australia include the government, the business owners, and the employees.
Key trends that influence the shortage of skilled staff in the tourism industry
Medium-term arrangements should center on building limit inside the nearby locale
(recommended time span is inside 6 to 12 months). This could incorporate building up help
systems to help organizations with getting to the correct help programs, creating preparing
programs applicable to the district's needs, and building better-coordinated effort between key
partners in the district to move in the direction of a mutual result for the tourism business (Choi
& Dickson 2010).
Challenges and how the agency can respond
The main problem that faces the education providers is that the curriculum needs to be
wide enough to cater for the many subsectors in the tourism industry. For instance, the
graduates need skills to serve in subsectors in the industry such as serving airlines and heritage
sites while at the same time the curriculum is to produce skills needed in to serve the SME and
other operators (Lashley 2009).
Possible reasons for government/business intervention
The government needs to intervene to ensure that the industry has skills to increase the
user experience of the tourists. Some help administrations give more included an incentive than
others. From the low learning force to the most noteworthy included esteem, they can run
from giving data, bringing issues to light, going about as a facilitator/impetus. Also, they are
charged with offering settlement in land/resorts; encourage coordinating/interfaces between

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 11
partners, supporting the evaluation of the business' qualities, giving insight/information, giving
exhortation, offering preparing, fashioning organizations, supporting the primary customer
look, encouraging exchange and financier, to putting resources into money-related designing
apparatuses.
Desirable effects/benefits and or outcomes of the plan
The advantages of the proposed plan are that if implemented fully, it has the potential
of ensuring that there is a reduction in the skilled labor shortages in Australia thus and
improving tourism experience. Improved tourism experience leads to more tourist arriving in
Australia and will, therefore, have a ripple effect throughout the economy. Secondly, the plan
has the potential of serving as a pilot project for use in other sectors of the economy
experiencing similar programs.
The scope of the proposed Plan
Possible policy approaches
A decent method to apply the idea is to configuration bolster administrations to SMEs,
joining money related and non-monetary instruments. For example, concedes and training;
venture preparation and value back; coaching and fare bolster; stipends for creative activities
and administration ability or enlistment of Ph.D. understudies (Magnini 2009).
Appropriate Instruments for the plan
In the plan, the government will support the tourism industry in solving the skilled
workforce mainly through indirect policy instruments. One of the policy instrument will involve
providing the infrastructure for developing training institutions and funding the research to

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 12
equip the established education providers with the requisite knowledge to serve the tourism
industry.
Combination of different instruments
A combination of the direct and indirect tools would be more effective in supporting
ensuring that the plan succeeds and serves the industry.
Resources required
The resources required for the plan to work include the human resources and budgetary
financial resources from the government.
Advantages and disadvantages of the proposed plan
The advantages of the proposed plan are that if implemented fully, it has the potential
of ensuring that there is a reduction in the skilled labor shortages in Australia thus and
improving tourism experience. Improved tourism experience leads to more tourist arriving in
Australia and will, therefore, have a ripple effect throughout the economy (Solnet & Hood,
2008). Secondly, the plan has the potential of serving as a pilot project for use in other sectors
of the economy experiencing similar programs (ABS 2008).
The main disadvantage of the plan is that it may not have noticeable changes in the
short-term as the process of skill acquisition and attracting potential employees into the
tourism industry will take time.
Can the policy plan provide direction?
The proposed policy plan provides direction on the way the industry and the
government are supposed to interact to address the shortage of labor in Australia’s tourism
industry.

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 13
Proposed Process
The Planning Process
1. Defining and profiling the area that has the issue to be addressed
2. Identification of the area’s skills and other labor shortage issues
3. Selection of appropriate solutions for the selected area
4. The allocation of roles, duties, and responsibilities. Also, determine timelines for
delivery.
5. The plan is after that Implemented, constant appropriate communication channels
opened, results measured and if any discrepancies are identified, the plan should be
revised.
How will it be done?
The plan will be instituted immediately after the government approves it. The plan will
be reviewed using the laid down procedures that would ensure that the plan was properly
implemented. The review will involve checking whether all the laid down plans were followed
to the letter and any discrepancy noted and factored into the final report. The discrepancies
can easily affect the results obtained, and it is important to figure it in the so that the results
can be properly grounded (Lashley & Rowson 2010).
Who will be consulted?
There will be a need to consult all the stakeholders including the government officials,
industry experts, and consultants knowledgeable in the field of education and skills acquisition.
How will the plan be implemented?

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 14
The policy plan is a document that has the input of all the stakeholders in the economy
and especially the one affected by the said problems. The implication of involving all the
stakeholders in the tourism industry is to ensure that the implantation process will be smooth
(Lashley & Rowson 2010). The plan will be implemented as stipulated in the plan as it had the
inputs of all the stakeholders.
How will it be reviewed?
The plan will be reviewed using the laid down procedures that would ensure that the
plan was properly implemented. The review will involve checking whether all the laid down
plans were followed to the letter and any discrepancy noted and factored into the final report.
The discrepancies can easily affect the results obtained, and it is important to figure it in the so
that the results can be properly grounded (Choi & Dickson 2010).
How will the success or lack of success be measured?
At the stage of preparing the proposed plan, the planners had ensured that it contained
important key Performance indicators (KPI) and goals. An example of these goals and KPI is:
 Goal
Increase in Vocational Education VETis related to the tourism industry in the country.
 KPI
An increase in the number of the VETis in the country compared to a period before the
plan.
If the KPI were not attained and there were no discrepancies in the process during the
review, then it is clear that the goals were not reached. On the other hand, if the KPI is reached,
then the plan was successful.

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