TOURISM AND EMPLOYMENT - Follow-up given to the Council Conclusions of 21 June 1999 INTERIM DOCUMENT OF WORKING GROUP B IMPROVING TRAINING IN ORDER TO UPGRADE SKILLS IN THE TOURISM INDUSTRY Draft Executive Summary Mr Jens Friis Jensen Rapporteur WGB 26-09-2000 TOURISM AND EMPLOYMENT Draft Executive Summary. WGB The diagnosis of the reality shows that the globalisation of products, services and markets already affects the tourism sector in Europe to an extent where there are more similarities than differences between the factors that affect tourism in all the Member States. Together with the consequences of globalisation, the relative loss in global market shares and signs of problems with quality are indications of the need for improved competitiveness. In many countries the seasonal character of tourism represents an obstacle to the development of tourism but in general the challenges tourism in Europe is facing can be linked to human resource problems, low productivity, quality gaps and the unexploited potential of technology. There is a difference between sub-sectors in the way the factors identified have an impact on the single sector. Parts of the hotel and restaurant sector, together with travel agencies and the transport sector experience the problems caused by the factors to a lesser degree. There is also a difference between the large number of small enterprises with seasonal structure and the very large (global) enterprises with whole year structure. Factors which could affect training in the Tourist industry (distilled from the Country Reports-not listed in order of priority) 1. Employment vacancies 2. Staff turnover 3. Staff recruitment and retention 4. Seasonality 5. Employment of foreign nationals 6. Work conditions. 7. Financial resources. 8. Poor perception and image of tourism 9. Career perspectives. 10. Labour shortage. 11. Skills gaps. 12. There is not a high level of off-the-job training of staff. 13. Relevance of qualifications 14. Low level of education of the workforce. 15. Wage inflation 16. Productivity. 17. Technology. 18. Industry complexity. 19. Limited size of the enterprise 20. Lack of specialist trainers with experience in the sector. 21. Poor quality training and overproduction of candidates/ diplomas 22. Fierce competition 23. Changes in organisational culture and the evolution of the nature of work 24. Motivation behind access to tourism as a job 25. Globalised tourism markets and evolution of the nature of demand for services 26. Vertical and horizontal integration processes Source: Self-elaborated from the Country Reports. In fact it seems to be necessary - when talking about training needs and solutions - to deal with two types of problems, two segments with different problems: The small family-run enterprise, the micro-enterprise; The large tourism enterprise. Due to the structure of the tourism sector it will be necessary to continue the work on the development of training systems, which incorporate the problems of season and the great share of micro enterprises. Public authorities should play a major role in the development of these training systems, which has to build on close links with the industry. But the general picture is that the tourism industry in general has problems of retaining labour (high labour turn-over) and the industry in some countries is experiencing problems of recruiting labour. Furthermore the industry in many countries in particular in the accommodation and restaurant sectors, struggles with a poor image as an employer. In general tourism is experiencing/facing a skills gap. Despite an improvement in the level of formal education tourism is still – with exceptions for sub-sectors such as travel agencies, transport companies and tourism organisations - characterised by a relatively 1 TOURISM AND EMPLOYMENT Draft Executive Summary. WGB low level of education compared to other sectors of the economy. Furthermore there is evidence that empirical knowledge is no longer enough to be competitive. There is an increased need for research and research-based education. At the same time it is also necessary to establish close links between universities and the industry to improve mutual understanding and the dissemination of knowledge. The training needs identified show that there is a need for improving general management skills. Particular attention, though, should be given to skills needed to face the impact and potential use of ICT and the development of human resources. For supervisors it is the training skills and for skilled (and semi-skilled) craft it is the integration of traditional technical skills with the skills derived from the emerging new job profile that is the most important. All categories - - Tourism New technologies Quality Customer Care Reception skills Communications Languages Team work Project work Sustainable development Entrepreneurship Safety and security within tourism enterprises First Aid Training needs in the Tourist Industry per category. Managers Supervisors Skilled craft Semi-skilled workforce training needs all categories + training needs training needs training needs all categories+ all categories+ all categories+ - Basic Computer skills - Basic - Personal - Personal - Business Planning/ strategic Computer skills skills planning skills - Problem - Technical - Strategic management - Human solving skills (bar, - Management Skills Resource - Basic kitchen, Management - Management through vision computer restaurant, - Hygiene and values skills cleaning.) - Accounting - Yield Management - Induction - In-house- Supervision - Accounting training training skills - Product development, - House- Training innovation keeping skills - Marketing training - Sales - Induction - Human Resource training Management - Planning resources, guidance and advice at regional/local level - Project management - Management skills to cope with the globalisation reality - Train the Trainer - Hygiene Source: Self-elaborated from the Country Reports. Together with a general improvement of skills for all categories priority should be given to the integration of traditional technical skills with the skills derived from the emerging new job profile. The changes in organisation and the new job profile indicate the need to move from a stage where the organisation is purely based on operations to a stage where the organisation, while still being operational, also becomes a development/learning organisation which will influence future training needs. Still there seems to be a need for developing the analytical framework for analysing learning practices in tourism in particular in micro enterprises and for analysing and 2 TOURISM AND EMPLOYMENT Draft Executive Summary. WGB identifying skills needs (competencies) to improve the basis for the anticipation of all ready coming and future job profiles. Priority/the focus should therefore be – not on education as the single solution to the problems - but on the capability of the enterprise to develop the existing workforce – in co-operation with training institutions, local/regional authorities, the social partners and other relevant stakeholders - in order to gain sustainable competitive advantage through the development of human resources. RECOMMENDATIONS On the basis of the diagnosis of the reality of learning in the tourism industry in Europe – distilled from the information provided by the national experts in the Country Reports – the following three strategic fields are recommended as priorities in order to improve the competitiveness of tourism enterprises from a training/learning perspective. 1. Attracting skilled labour to the sector It is necessary to improve the attractiveness and the image of the sector as a serious alternative to other sectors of the economy in order to ensure future recruitment and diminishing the skill gaps. The following measures are recommended: Short term Long term A benchmarking system on 1) innovative and flexible training solutions (with the involvement of the social partners); 2) career-paths, mobility, improved working conditions and flexible working contracts supported by a research and development programme. Detecting and generating innovative solutions in order to improve the image of the tourism sector; involving all stakeholders. Improving the quality of education and training in tourism for people entering the industry so that it to a better reflects the real needs of the tourism sector. (to be coordinated with WGC) Establishing closer links with industry, Improving the quality of trainers Develop tailored training programmes together with the industry for new labour entering the tourism sector using seasonality as a means for innovative solutions. 2. Retaining and developing labour in the sector High turn over and skill gaps are identified as some of the most important factors affecting tourism. There is a need to improve the enterprise ability to retain and develop HR in tourism. Short term Long term Identifying activities to raise Continuing training should be made flexible and adaptive awareness among the tourism on new skills taking into account the complex working industry – and other schedule and seasonality in the industry together with the stakeholders - with the purpose fast changes in skill needs. Continuing training should not of the benefits of qualified only be thought of for skilled/semiskilled labour but also for labour, improved working supervisors and managers. conditions, investment in The concept of life-long-learning should be further training and on the career developed and promoted within tourism possibilities in the tourism Improve the knowledge basis on skill needs and training in 3 TOURISM AND EMPLOYMENT Draft Executive Summary. WGB sector as a whole. A research programme on human resources needs, innovation, learning, productivity and improved working conditions focusing on the role and responsibility of the enterprises respectively the public authorities in a public-private interface. A benchmarking system directed at tourism enterprises as a concrete tool for improving business excellence via investment in the development of human resources and it’s impact on quality, innovation, reduced operational costs, etc (to be coordinated with WGC). tourism. (to be coordinated with WGA) Improve statistics in the field of education, training and learning needs (to be coordinated with WGA) Develop the analytical framework for analysing and identifying present and future skill needs (to be coordinated with WGA) Bench-marking system for detecting innovative solutions for the validation and recognition of qualifications acquired both in formal education and as a result of professional experience and informal training as 1) motivation for improving skills both for employees and employers and 2) building loyalty to the tourism industry The formation of a European Forum to facilitate the exchange and dissemination of tourism training practice among the Member States. The Forum should include an observatory of qualifications and skill needs in tourism in the EU and ensure better documentation on labour and training: number of jobs, job creation, skill needs, training expenditure, working conditions, etc (to be coordinated with other WG’s) The creation of a network of Centres of experiences in tourism 3. Improving competitiveness in micro-enterprises The micro enterprises are an important part of European tourism and need to have particular attention due to their special conditions Short term Long term Programme for improvement of management skills – not Research on the concept of only the management of the enterprise: business planning, learning in tourism as a common marketing, product development and innovation and concept for the development of HRM, but also skills in developing strategic alliances human resources in tourism in (networks) between enterprises need to be developed Europe in particular in micro (strategic management). enterprises so as to get knowledge on how to Special attention should be given to the potential for an systematically improve the integrated use of ICT in micro enterprises. capability of the enterprise to Support the further development of Concepts for develop the existing workforce Regional/local learning structures, learning in networks as in order to gain sustainable a system for improving competitiveness in micro competitive advantage through enterprises that can 1) Anticipate training/skills needs and the development of human 2) Secure their flexible and immediate provision with the resources. active involvement/participation of all stakeholders Development of the analytical involved in improved training structures framework for analysing Support the development of concepts for learning where learning practices in tourism in regional/local public authorities take the initiative in a particular in micro-enterprises dialogue with relevant stakeholders to establish networks and for analysing and of enterprises supported by training institutions identifying present and future Diminishing barriers and obstacles to training for microskill needs to improve the enterprises by identifying and providing sources of anticipation of emerging job funding for planned training. profiles. 4 TOURISM AND EMPLOYMENT Draft Executive Summary. WGB Despite the education and training reforms in several countries there is still great uncertainty about how tourism education should evolve in the future to take up the challenges described in the report. The issue of future requirements for tourism education and training should therefore be followed very closely and could together with the issue of learning be the subject of systematic research, both at national and EU-level. Several Community Policies and EU-programmes could make important contributions in meeting the challenges described in the report: policies on vocational training, employability, mobility and life-long-learning, programmes such as Leonardo da Vinci, EQUAL, Socrates, Tempus, community action programme for youth and the 5th framework programme. A dialogue between the Member States, the European Commission, European institutions and specialised institutions such as CEDEFOP, ILO1; the tourism industry, the social partners, other relevant stakeholders and other experts on education issues within the EU is needed to start a discussion on how to build a strategy for the future process of improvement and development of human resources and learning. The role and responsibility of all stakeholders in future solutions can not be stressed enough. Yet public authorities at all levels – national, regional and local level - must be said to have a special and very important role to play in the development of micro enterprises. As a consequence, training and strategic information should be made available for public authorities in particular for authorities responsible for local development (to be co-ordinated with other WG’s). This document – as result of common work of Member State experts – is proposed to form the basis of EU guidance to Member States on tourism training support through existing EUprogrammes implemented at national level such as the ESF-programmes. 1 CEDEFOP: European Centre for Development of Vocatonal Training . ILO: International Labour Organisation (UN). 5