Training Demand Profile 2008

Training Demand Profile 2008

Tourism and Hospitality

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Training Demand Profile July 2008– Tourism and Hospitality

Executive Summary

The tourism and hospitality industry in Tasmania is broad and diverse. This training demand profile illustrates the perceptions, opinions and experiences of a range of operators, business intermediaries, registered training providers and other interested parties of the Tasmanian training sector and how well it is serving the needs of such a diverse industry.

Over 120 stakeholders were contacted. Their input has been synthesised into this report along with background data from Skills Tasmania and other third parties.

In summary, the report found that there are some urgent and fundamental issues to be addressed by both the training sector and the tourism and hospitality industry. Major findings include but are not limited to:

• Macro economic factors such as population change and a low unemployment rate are impacting on the number of people available for training in tourism and hospitality.

• There is substantial ‘wastage’ of training (where people are trained/qualified but do not remain in the industry) due to a range of issues including trainee mobility, mismatch of training to employer/employee need, perceived lack of flexibility of the National Training Package andattractiveness of work in other industries.

• Funding arrangements are perceived to be poorly matched to the characteristics of an industry that is highly casualised with high mobility and seasonal challenges.

• Perceived lack of credibility and consistency in the training system where the focus is on assessment not delivery of skills training to participants.

• Lack of engagement with owners/operators/managers in regard to their own professional development needs to improve general contemporary business management skills. This is reported as being a significant issue for individual businesses and the industry as a whole if a greater number of appropriate staff are to be attracted and retained.

• Administrative requirements are reported to be confusing, alienating and weighty and there is general confusion about the roles of the players within the training system (e.g. apprenticeship centres, training organisations and Skills Tasmania).

• More liaison between industry and training providers (including vocational education in schools providers) is required. A coordinated and strategic approach needs to be taken to better address training, skills and professional development needs of the industry.

Contents

Introduction and acknowledgements 3

Scope4

Part One

Industry Background 6

Part Two

Skills Shortages 16

Part Three

Industry Demand for Training 19

Size of the industry19

Characteristics of the existing workforce 21

Normal drivers of training demand in this industry group 23

Changes occurring in the demand for training 27

Changes required to the nature of training 28

Target market for training33

Numbers of people that need to be trained 34

Comments on any government funded training provision in

excess of local industry need 38

Recommendations for the appropriate response by the

training system38

Information on training demand being met outside the

Tasmanian public system 41

Additional industry advice not directly related to industry

demand for training 42

Part Four

Assessment of Infrastructure Needs 43

Part Five

Information on VET in Schools and Australian

School-based Apprenticeships and Traineeships 44

VET in Schools

Qualifications and pathways appropriate for delivery through

VET in Schools44

Development and support for VET in Schools programmes 44

Emerging opportunities 45

Part Six

Industry’s Top Priorities for the Public System 47

Qualifications 47

Competencies 47

System priorities48

Part Seven

Higher Education49

Demand for industry skills being met by higher education/could be

met by higher education49

Introduction

This document has been developed based primarily on data derived from interviewer-conducted in-depth interviews. A representative purposive sample of 103 was drawn from the Tourism Industry Council of Tasmania membership list. Other industry representatives were also invited to participate where their input was deemed appropriate and valuable (e.g. VET in Schools, registered training organisations, industry partners, non-members, etc). Participation in the survey represented 64% of the sample. Participation was declined by 14% citing no contact with, or comment to make about, the training in this industry. The remaining 22% had either ceased trading or were not contactable.

Acknowledgements

Appreciation is extended to the representatives of the businesses and organisations who participated and made a valuable contribution to the development of this document.

Scope

This training demand profile aims to illustrate the future training requirements of the Tasmanian tourism and hospitality industry and is principally concerned with providing information regarding broad segments. These segments include:

• Hospitality
• Commercial Cookery
• Retail Travel/Tourism Operations
• Meetings and Events
• Guiding
• Eco Tourism
• Caravan and Holiday Parks.

The National Tourism and Hospitality Training Packages (THH02/THT02) that provide qualifications and competency standards for the tourism and hospitality industry have recently been reviewed. A single National Training Package, the Tourism, Hospitality and Events Training Package (SIT07) that covers the two sectors, has now been endorsed.

Caravan and holiday parks are currently represented by the Caravan Industry Training Package (THC04), which is currently under review.

The following table identified the principal qualifications as identified by Skills Tasmania statistics as being in use within Tasmania. Where no or few (less than 50) enrolments have been identified as being delivered in Tasmania since 2002, the qualification has not been included.

Whilst this document primarily aims to indicate training needs of the tourism and hospitality industry, background and emerging issues that have an impact on the development of the capability of the people within the industry will also be investigated. Whilst these issues may not be training related per se, they will have a direct influence on the ability of Tasmania’s publicly-funded training system to provide, enhance or further develop skills for this industry.

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Training Demand Profile July 2008– Tourism and Hospitality

Segment / Training Package
SIT07 has recently been endorsed and replaces THH02 & THT02 / Principal Qualifications / Qualifications in Newly Endorsed Training Package
Hospitality / THH02/SIT07 / Certificate I in Hospitality (Operations)
Certificate II in Hospitality (Operations)
Certificate III in Hospitality (Operations)
Certificate IV in Hospitality (Supervision)
Diploma of Hospitality Management
Advanced Diploma of Hospitality Management / Certificate I in Hospitality Certificate II in Hospitality
Certificate III in Hospitality
Certificate IV in Hospitality
Diploma of Hospitality
Advanced Diploma of Hospitality
Commercial Cookery / THH02/SIT07 / Certificate I in Hospitality (Kitchen Operations)
Certificate II in Hospitality (Kitchen Operations)
Certificate III in Hospitality (Commercial Cookery)
Certificate III in Hospitality (Patisserie)
Certificate III in Hospitality (Catering Operations)
Certificate IV in Hospitality (Commercial Cookery)
Certificate IV in Hospitality (Patisserie)
Certificate IV in Hospitality (Catering Operations) / Certificate I in Hospitality (Kitchen Operations)
Certificate II in Hospitality (Kitchen Operations)
Certificate III in Hospitality (Commercial Cookery)
Certificate III in Hospitality (Patisserie)
Certificate III in Hospitality (Catering Operations)
Certificate IV in Hospitality (Commercial Cookery)
Certificate IV in Hospitality (Patisserie)
Certificate IV in Hospitality (Catering Operations)
Retail Travel/Tourism Operations / THT02/SIT07 / Certificate II in Tourism (Operations)
Certificate III in Tourism (Retail Travel Sales)
Certificate III in Tourism (International Travel Sales)
Certificate III in Tourism (Tour Wholesaling)
Certificate III in Tourism (Visitor Information Services)
Certificate III in Tourism (Guiding)
Certificate III in Tourism (Attractions & Theme Parks)
Certificate IV in Tourism (Operations)
Certificate IV in Tourism (Guiding)
Certificate IV in Tourism (Sales and Marketing)
Diploma of Tourism (Operations Management)
Advanced Diploma of Tourism Management / Certificate II in Tourism
Certificate III in Tourism
Certificate III in Tourism (Retail Travel Sales)
Certificate III in Tourism (International Travel Sales)
Certificate III in Tourism (Tour Wholesaling)
Certificate III in Tourism (Visitor Information Services)
Certificate III in Tourism (Guiding)
Certificate IV in Tourism
Certificate IV in Tourism (Guiding)
Diploma of Tourism
Advanced Diploma of Tourism
Meetings and Events / THT02/SIT07 / Certificate III in Meetings and Events
Diploma of Event Management
Advanced Diploma of Tourism Management / Certificate III in Events
Diploma of Events
Advanced Diploma of Events
Guiding / THT02/SIT07 / Certificate III in Tourism (Guiding)
Certificate IV in Tourism (Guiding) [limited enrolments] / Certificate III in Tourism (Guiding)
Certificate IV in Tourism (Guiding)
Eco Tourism / THT02/SIT07 / No specific qualification in this segment / No specific qualification in this segment
Caravans and Holiday Parks / THC04 / Certificate II in CaravanPark Operations
Certificate III in CaravanPark Operations

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Training Demand Profile July 2008– Tourism and Hospitality

Part One

Industry Background

The Tasmanian tourism and hospitality industry has experienced a period of consolidation since rapid growth in the late 1990s. Driven largely by the series of Tourism 21 Strategic Plans, revenue from tourism and hospitality has risen to over $1.3billion[1], up from a total of $568 million as reported in 1996[2] (not inclusive of intrastate spending). Visitation to the state, too, has grown significantly and currently stands at around 824,100 (as reported by the Tasmanian Visitor Survey, December 2007), up from around 480,000 in 1994[3].

Contributing around 7% of GSP, tourism and hospitality currently employs around 23,000people (this is direct employment and does not include another 16,000 or so indirect jobs), or9% of the workforce[4]. This represents considerable growth from the estimated 18,300 people employed in 1998[5].

Moving forward, Tourism Tasmania expects the Tasmanian tourism and hospitality industry to continue to grow, albeit more conservatively than experienced in the recent past. Tourism Tasmania’s targets for projected visitor expenditure by 2010 total over $2.6 billion per annum, including expenditure by intrastate, interstate and international visitors. This equates to around 1.3million interstate visitors and 220,000 international visitors per annum.

Growth in visitation, revenue and employment are important factors impacting on the provision of training in this industry. As the global, national and intrastate market has grown, matured and become more sophisticated, it has expected our industry to move with it. Demands regarding quality, service provision and product offering have impacted on both businesses and employees, and in many ways, drive the need for a professionally skilled workforce, including all personnel from owners and managers to the frontline.

All Tourism 21 strategy documents have identified the need to continually invest in the skills and capabilities of the tourism and hospitality workforce. The 2007-2010 plan cites that it is important to “Deliver on the Promise” through the provision of professional training, the development of career opportunities and provision of consistent, year round employment. This indicates that capability must not only be thought of as a frontline imperative, but also as a business management imperative that includes access to contemporary business management development opportunities for those who own and manage businesses in this industry.

The current strategy document also recognises and encourages global exposure through the use of technology such as search engine marketing and intelligent online distribution methods for the Tasmanian Tourism and hospitality products. This, too, will require skill development as the industry and its personnel move from a business world of long lead times, paper-based systems and isolated product-management systems to one of short lead times, global exposure and digital processes.

Other core strategies of the current Tourism 21 document include the creation and effective marketing of a highly desirable destination and ease of access to, within and around Tasmania.

Improved infrastructure, product quality and major events

It has been known for some time that the sophistication level of our visitors is rising and, in turn, their demands focus more on quality and breadth of experiences. Thus, greater emphasis has been, and will continue to be, placed on the visitor’s holistic experience of Tasmania. This has been communicated strongly via the tourism ‘brand’ but the brand promise must be met by the actuality of experiences, including high quality food and beverage, accommodation, activities/attractions and events (e.g. Targa Tasmania, AFL, 10 Days on the Island and V8 Super Cars, Agfest).

Currently, there is over $800 million worth of tourism development planned or underway. This includes accommodation development, attractions and infrastructure developments[6].

Quality of product and service delivery is imperative in this industry. In many ways there is little to separate the product provided to the visitor and the people delivering it. Often the product in its entirety rests on the quality of interaction with industry personnel (e.g. in the provision of a guided tour). This illustrates the critical importance of finding the right people with appropriate skills.

However, Tasmania, like many other areas within Australia and overseas, is currently experiencing a number of macro environmental issues. These issues are wide ranging and threaten the growth, profitability and quality of the products and services provided by the Tasmanian tourism and hospitality industry.

Labour market issues

One of the most pressing and potentially debilitating issues facing the tourism and hospitality industry is the issue of labour shortages. Overwhelmingly, respondents to this research have identified that the lack of people willing and able to work in this industry is putting pressure on effective business operations.

In an environment of near full employment[7], generally good economic conditions and growth in demand for tourism and hospitality products and services, the demand for labour across all industries is increasing. As work in this industry is often perceived to be of a lower status[8] than in some other industries, traditional labour sources have found and taken opportunities elsewhere. Active ‘poaching and headhunting’ of staff trained and experienced in customer service roles is commonplace, especially in the call centre, retail and professional services sectors.

Evidence suggests that many operators are struggling to find people to train into job roles. Despite advertising and using traditional recruitment methods, many operators have reported receiving no applicants to fill vacancies. Whilst recognising the shortage of skilled people in the labour pool, many operators are disappointed that they are unable to find people to train into the tourism and hospitality workforce.

This, of course, has implications for training providers who may find themselves with fewer people to provide training to, or they may find themselves training people who may not have the fundamental ‘soft skills’, ability or desire to work in this industry, thus preventing them from being employable.

Given that the industry’s traditional source of labour is diminishing due to an aging population and a greater level of opportunity in other industries, non-traditional sources of labour must be considered. These include:

• Women with children returning to the workforce
• Mature-aged people looking for a ‘lifestyle’ job of less than full-time hours
• New Australians (permanent residents)
• People with disabilities but with capability to work in our industry for less than full-time hours
• Backpackers and/or short-stay visitors wanting seasonal or short-term work.

Many other industries have been actively targeting the non-traditional labour pool for some years and are ahead of the tourism and hospitality industry regarding the provision of training, flexible work arrangements and differing workplace arrangements to accommodate the needs of these groups of workers. It is imperative that the tourism and hospitality industry becomes aware of and accepts these alternatives to the traditional labour pool if they are to be attracted to, trained for and employed in this industry to alleviate the current (and future) labour crisis.

Looking to the near future, should it go ahead, the Gunns Pulp Mill will place a further strain on the available labour supply. It is suggested that labour will be drawn from all industries, including the traditional tourism and hospitality labour pool. So too, ‘big box’ retail developments, especially in the south of the state, will also draw people from the tourism and hospitality industry.

The Demographic Change Advisory Council (DCAC) discussion paper[9] suggests that this will start to be seen in 2010; however, the impacts are already being experienced among many industries. The following graph taken from the DCAC discussion paper illustrates why the tourism and hospitality industry in particular needs to look to alternative sources of labour. Our traditional labour pool (18 – 35 year olds) is currently shrinking and will not be replaced.

This is further exacerbated by migration from the state. The following graph illustrates how the majority of migration from Tasmania occurs in the traditional labour pool. The red line indicates that in 2006/07, the number of people in the 15-35 age brackets leaving Tasmania has increased compared to 2005/06 and 2003/2004 figures, suggesting that the gains made in arresting the ‘labour drain’ of the late nineties are being lost.

Source: ABS Migration 8210.0 various yearsand tasmanianjobs.com, 2008

Ageing population and ageing workforce

The Tasmanian population is ageing. The DCAC identifies that Tasmania is ageing at a more rapid pace than the rest of Australia, and as our population ages, the workforce participation rate goes into decline, thus offering fewer people for employment.

However, our businesses are ageing too and it is likely that in the near future, many of our business owners and managers will be retiring. This has implications for training in business management. Succession planning and skilling the next generation of managers is imperative. Not only do our current managers need the skills to ready their businesses for sale or succession, the personnel coming through need both a worthwhile career path and contemporary business management skills to step up into an ownership or management role.

Where business owners do not have the capacity to sell their businesses or develop an appropriate business plan, the industry may lose inventory. Small and micro businesses are particularly susceptible in this regard.