Mixed Fortunes For Hospitality, Leisure, Travel And Tourism
It's been a mixed and volatile year for the hospitality, leisure, travel and tourism industry. But those who have adapted their business strategy to the changing environment or effectively marketed themselves through new technology emerged as clear winners, a major industry report from sector skills council, People 1st reveals.
According to the 'State of the Nation 2010' report, those who performed relatively well were cruise operators, tourist attractions, self-catering accommodation, and budget operators providing quality, value for money offers. Despite the recession, sectors with the close links to domestic tourism have reported higher sales turnover.
The report - a definitive snapshot of the labour market for hospitality, leisure, travel and tourism (HLTT) - found that the sector is still recruiting with businesses finding it easier to hire staff. In fact, almost half (45 percent) of sector employers recruited new staff in the 12 months to March 2010. 55 percent of businesses also believe the recession has made it easier to retain staff.
Encouragingly, the economic downturn does not appear to have effected the amount of training business provide their staff (59 percent of businesses said they offer the same amount in 2010 as in 2009, while 14 percent provided more training). However, how training is delivered appears to have been affected with 51 percent moving more training in-house.
Of the 34 percent of sector employers who indicated in 2009 that they intended to seek government funding for training, only six percent actually did so, most likely as a result of cuts in the availability of funded provision.
On a positive note, with training spend at £2,575 per head compared to an all industry average of £1,725, the hospitality, leisure, travel and tourism sector is one of the top five largest spending sectors on training of the economy.
Worryingly, more sector employers report that their staff do not have the necessary skills to meet their business needs - rising from 19 percent two years ago to 26 percent in 2009. 180,000 people working in the sector are not considered to be fully proficient in their jobs - a significant increase of 40,000 since 2007.
The biggest skills gaps cited by employers within the hospitality, leisure, travel and tourism industry were around management and leadership, chef skills, and customer service skills. IT skills were also cited and the type required will vary but will include maximising the potential of social media, e-marketing, website design and producing applications for mobile phones.
While trading is expected to be tough in 2010 as disposable income reduces, the sector needs to gear up for growth. By 2017, total employment is predicted to grow by nearly 10 percent with 208,000 additional jobs and when replacement demand is taken into account, projections indicate that a total of 1,063,000 additional people will be required to work in the hospitality, leisure, travel and tourism sector. Strong managerial skills will be essential as it is anticipated there will be 69,000 additional managerial posts by 2017.
Brian Wisdom, chief executive of People 1st concluded: "Investment and ongoing professional development is essential to the continued success of the UK's hospitality, leisure, travel and tourism industry. Whilst training levels have substantially improved, People 1st continues to ensure that this money is spent in the most economic way, improving the situation for employers, employees and service levels across the sector."
ENDS
For further information please contact: Oksana Higglesden - tel: 01895 817010, oksana.higglesden@people1st.co.uk
State of the Nation 2010 is endorsed by ABTA and BHA and sponsored by VT Group and EDI.
It includes the findings from People 1st's 2010 Industry Survey. This representative survey of 2,014 hospitality, leisure, travel and tourism businesses was conducted in March 2010
