Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry

Proposal for the Preparation of Labour Shortages in Australia Hospitality Industry 1
PROPOSAL FOR THE PREPARATION OF LABOUR SHORTAGES IN AUSTRALIA HOSPITALITY
INDUSTRY
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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