8 April 2011
Expert Panel Final Report on Apprenticeships and Traineeships for the 21st Century
Department of Education, Employment and Workplace Relations
GPO Box 9880
CANBERRA ACT 2601
Via email: apprenticeshipreform@deewr.gov.au
To Whom it May Concern:
A Shared Responsibility - Final Report of the Apprenticeship Expert Panel
The National Tourism Alliance (“NTA”) appreciates the opportunity to provide feedback on the Expert
Panel’s Final Report ‘A Shared Responsibility: Apprenticeships for the 21st Century’. Whilst industry
agrees that the growing demand for skilled workers requires a decisive response from Government and
industry, the Australian tourism and hospitality industry has grave concerns regarding the impact of
some of the recommendations of this report; specifically, the proposed eligibility criteria for structured
support mechanisms.
The NTA is the forum that unites the Australian tourism and hospitality industry, providing a single voice
to Federal Government on issues of common interest. Our membership comprises the major
associations within tourism including the Australian Tourism Export Council, Tourism Transport Forum,
Australian Hotels Association, AAA Tourism, Australian Federation of Travel Agents, the Victorian
Employers Chamber of Commerce and Industry, Business Events Council of Australia, Restaurant &
Catering Australia, Accommodation Association of Australia, Board of Airline Representatives,
Australasian Casinos Association, Caravans & RV Association, Australian Airports Association, Australian
Winemakers Federation, the Australian Regional Tourism Network, as well as all of the state Tourism
Industry Councils.
The NTA is proud of the investment that the tourism industry makes in developing and supporting the
Australian workforce, where employers both large and small make significant efforts to attract and
retain the best workers and improve productivity. We are also proud of the significant contribution that
tourism and hospitality makes to the Australian economy and Australian society.
It was therefore with some surprise that this Report made the assertion that the job roles and skills in
tourism and hospitality are any less important or valuable than those in other industries and that our
sector does not provide any tangible benefit to the broader economy. As Australia’s largest services
export earner and provider of around half a million jobs, we reject absolutely this assertion. The tourism
and hospitality industry is a strong and valuable contributor to Australia’s economic prosperity, as
detailed below, and it is consequently with Recommendation Five that industry is most concerned.
This Recommendation provides that “structured support services ..(be redirected to) …eligible
apprenticeships and traineeships.” There is significant alarm within industry about the criteria being
proposed to determine ‘eligible’ industries and would place tourism and hospitality apprenticeships
outside of the proposed revamped apprenticeships and traineeship system altogether. The Report itself
notes at page 57 that given this criteria “…a range of occupations would not be eligible for structured
support services. This includes hospitality, clerical and administrative workers, sales workers, machinery
operators and drivers, labourers occupations…” (p. 57)
Given this approach, and when significant employers of labour and contributors to national GDP are
ruled out as contributing to assisting Australia achieve sustainable growth and productivity and
increasing participation rates in the national labour force, concerns arise as to the approach this Expert
Panel took to examining Australian industry requirements. Specifically, there has been concern that:
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No member of the expert panel is from the services/non-trade industries and that largely, the
industry representatives are strongly aligned with construction, manufacturing and mining.
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The evidence base used to underpin the report is flawed with a heavy focus on linking
apprenticeship return on investment to higher wage rates – which while critical – does not also
allow for measuring return to productivity rates, participation rates and other non-tangibles
(career pathways, language literacy and numeracy etc).
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The consultation process to produce the report was strongly engaged with manufacturing and
construction areas, whereas the engagement with the services industries was limited.
Future Growth of the Tourism Sector
Tourism Australia, in consultation with the Department of Resources, Energy and Tourism and the
tourism industry, have developed the 2020 Tourism Industry Potential – a growth strategy to coordinate
Government and industry efforts to increasing the returns from the tourism and hospitality sector.
Meeting these targets will not only increase the economic contribution of the tourism industry, but will
enhance the social benefits enunciated above. Having a sufficient supply of skilled labour for the
tourism sector is the key to growth, with estimates predicting that an increase in jobs of 12 to 32 per
cent will be needed for the industry to grow to this potential.
The recommendations of this Report, if implemented, specifically as they pertain to eligibility for
incentives, have the potential to restrict growth substantially, and thereby limit the social benefits that
can flow from the tourism industry. There is serious concern that over half a million tourism and
hospitality jobs are once again considered by Government as having lower status and value than other
jobs and occupations in the Australian workforce.
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Contribution of tourism and hospitality to the Australian economy
As highlighted above, tourism and hospitality makes a valuable economic contribution to the Australian
economy. This contribution includes:
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Tourism and hospitality employs over 480,000 Australians directly and over 320,000 indirectly –
with direct employment accounting for 4.5% of total employment;
Tourism and hospitality related employment in regional areas generated over 220,000 jobs;
Tourism and hospitality provides more jobs in Australia than mining and agriculture, forestry,
and fishing;
Tourism and hospitality contributes $33 billion, or 2.6%, to Australia’s GDP;
Tourism and hospitality generates over $24 billion in export earnings – representing over 8% of
total exports;
Tourism and hospitality generates almost $7bn in tax revenue, including over $4.4bn in GST
going to State Governments;
Tourism and hospitality makes a valuable contribution to regional Australia, with 46 cents in
every dollar of tourism expenditure being spent in regional Australia; and
100,000 Australians own profitable and innovative tourism businesses.
Contribution of tourism and hospitality to Australian society
As well as the significant economic benefits detailed above, tourism and hospitality businesses play an
important role in supporting and developing communities across Australia in ways such as:
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The tourism and hospitality workforce comprises a large proportion of female workers, and
provides many flexible and alternative options in addition to the regular 9-5 workplace, enabling
them to re-enter the workforce as well as build careers.
Tourism and hospitality businesses provide valuable employment and training opportunities for
young people;
Tourism and hospitality provides a range of entry level and semi-skilled occupations that provide
a valuable entry point to the workforce for disadvantaged people;
Tourism and hospitality businesses are significant employers in rural and regional areas;
Tourism and hospitality brings financial viability and cultural vibrancy to many of our regional
communities;
Tourism and hospitality provides unique opportunities to maintain and develop Indigenous
culture, and employ Indigenous employees. In addition, tourism has enabled the development
of Indigenous owned and operated businesses, often in unique locations and destinations that
empower, train and employ local Indigenous employees;
International business tourism, incentives, events and conferences, aside from the delegates’
expenditure, contribute to Australia’s research and innovation capacity, business links, academic
standing, trade links and international prestige. This sector provides professional development,
international links, education opportunities and future business development opportunities to
all sectors of Australia’s business, association and not-for-profit communities.
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The NTA is proud of the contribution the tourism and hospitality industry makes to Australian economic
and social life – our sector, and our roles, should be a part of a reformed apprenticeship and traineeship
policy in light of this contribution. We therefore join with others in the services sector in calling for the
Government to include the service industries unequivocally in the reformed apprenticeship and
traineeship policy, on the basis of their significant contribution to Australia’s economy and society.
If you have any questions in relation to our letter please do not hesitate to contact me on (02) 9264
2185.
Yours sincerely,
Juliana Payne
Chief Executive
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