EXECUTIVE SUMMARY
Introduction
1.
The purpose of the survey is to collect data on the existing manpower situation in
order to project future manpower requirements and training needs of the hotel industry. The
fieldwork took place from 21st November 2003 to 31st December 2003 with follow up cases
completed on 15th April 2004.
2.
The survey had a full coverage of the listed 96 hotel establishments and 33
Chinese restaurants operated by hotels in the Central Register 1 of the Census and Statistics
Department. The two main HSIC branches of the industry are as follows:
Branch 1 : Hotels (HSIC 6511)
96 establishments
Branch 2 : Chinese Restaurants Operated by Hotels (HSIC 6411-6415)
33 establishments
3.
Out of the 96 establishments, 89 were successfully enumerated with the required
information collected. 7 establishments declined to respond. The effective response rate was
92.7%
4.
As regards the interpretation of the findings in this report, users are advised to
note that the outbreak of the Severe Acute Respiratory Syndrome (SARS) in March 2003 has
brought about abrupt and serious impact on the economy of the city and the hotel industry.
Business Outlook
5.
The hotel industry in Hong Kong was hopeful of sustained business growth in
2003. When Severe Acute Respiratory Syndrome (SARS) suddenly erupted into a
community outbreak in Hong Kong and other parts of Asia in March 2003, travel in and out
of Hong Kong was severely affected. Occupancy plummeted and average room occupancy
rate in Hong Kong dropped to a record low of only 14% in May 2003. The average hotel
occupancy in 2003 was dropped to 64% as compared to 84% in 2002.
6.
With Closer Economic Partnership Arrangement (CEPA) and other business
opportunities abound, the business flow between China and Hong Kong would continue to
increase. The demand for hotel accommodation and manpower are expected to grow.
Implications on Manpower
7.
Despite the overall high unemployment rate of about 7.9% in 2003, it is
estimated that the overall manpower situation for the hotel industry would be fairly stable
with considerable optimism and more job opportunities would be created in the near future.
(i)
According to the Hong Kong Hotels Association, it was estimated that
20,000 new hotel rooms would be available in Macau in 2005 and 2006
and 10,000 in Shenzhen during the same period. With the emerging
markets of the hospitality and tourism industries in Hong Kong, Macau
and the neighboring Pearl River Delta region, a surge in manpower drain
at the supervisory and managerial level from Hong Kong to its
neighboring cities would be expected.
(ii)
According to the Hotel Supply Situation Report as at March 2004
provided by the Hong Kong Tourism Board, it was noted that over 26
new hotels with 14,279 additional rooms will be up and coming in
2004-2006. Hong Kong Hotels Association further estimated that the
numbers could be even higher with some 40 additional new hotel projects
coming from change of land use being approved by Government since
January 2003. These projects will however require payment of land
premium to go ahead and their completion dates will be beyond 2006. It
is worth while to note that the operation nature of the additional hotels
would affect the level of manpower demand.
(iii)
The opening of the Hong Kong Disneyland which includes the operation
of Disneyland-style theme park, 400 rooms Hong Kong Disneyland Hotel,
600 rooms Disney’s Hollywood Hotel, retail, dining and entertainment
complex, would create 5,000 job openings in 2005, inclusive of 1200 –
1500 openings in the two hotels.
(iv)
With the implementation of Closer Economic Partnership Arrangement
(CEPA) between Hong Kong and the Mainland, the strong and continued
economic growth in the Mainland as well as the increased number of tour
groups following the abolition of the group quota as well as further
relaxation of individual travel restrictions for Mainland China citizens,
visitor arrivals continuously show an increasing trend. It is anticipated
that many jobs would be created in the industries in the next few years.
Meanwhile, the wastage rate of the hotel industry would be increased as
the manpower might be attracted to other industries such as banking or
retail which might offer better career prospects and less demanding work
requirements.
(v)
The seasonality nature of the hotel business as well as the economic and
political uncertainties have resulted in continuous changes in the
manpower demand mix, ie an increase of part-time employees and
decrease of full-time employees who would be required to perform
multi-tasks. There has been an increasing trend that food and beverage
operations in new hotels are either small or outsourced. In an effort to
increase cost efficiency in the operation without affecting long-term
marketability and sales, hotels have been increasingly operated with a
flexible and stable pool of causal or part-time employees.
(vi)
An increasing number of alternative accommodation categories such as
guesthouses, service apartments and hostels not included in this survey
would elevate the manpower demand in this industry sector.
(vii)
With the China market continuing its surge, the Putonghua speaking
capability of hotel staff requires continuous upgrading.
More
experienced travelers from China on individual travel to Hong Kong
would expect to see more native speaking Putonghua staff in hotels.
8.
The future of the tourism and hospitality industry would depend highly on the
availability of qualified staff to deliver the service quality that has earned Hong Kong a world
reputation of a great destination. Vocational training on entry level for the hotel industry
would be crucial to the future success of the hotel industry. With many new hotel projects on
the drawing board and competition for staff from neighboring areas, the demand for welltrained staff at the operative and supervisory levels will be significant in the future. The
Training Board believes that increased provisions for the further upgrading of training
facilities and capacity would be crucial.
Highlights of Survey Findings
9.
The survey reveals that in December 2003/January 2004, a total of 21 915 persons
were employed in the hotel industry, of which 1424 (6.5%) were in the managerial category,
5854 (26.7%) supervisory and technician category, 2566 (11.7%) craftsman category, 9629
(43.9%) operative category, 2442 (11.2%) clerical/secretarial and others category.
10.
The Training Board has examined the survey findings and is of the opinion that
they generally reflect the manpower situation of the hotel industry at the time of the survey.
The Training Board considered that the trends for the increase in the number of operative
employees will continue. The Training Board believed that the negative impact of Severe
Acute Respiratory Syndrome (SARS) over the period of March to June 2003 to the hotel
industry was significant. The uncertainty about the future global economic and political
situation would affect the employers’ forecast in the number of employees in 2005. To
enhance cost efficiency, it is anticipated that the trend of hiring part-time and casual
employees would persist in the industry.
Manpower Projection for 2004-2006
11.
Based on the staff-to-room ratio of 0.6:1, the projected number of hotel rooms
and manpower for 2004 to 2006 are as follows:
2003
2004
2005
2006
Actual
Manpower
21 915
-
Projected
Manpower
#Projected No. of
Rooms
25 102 (+14.5%)
29 741 (+18.5%)
30 202 (+1.6%)
38 133
43 444
51 176
51 945
# Source: The Hotel Supply Situation Report as at March 2004 published by the Hong Kong
Tourism Board.
Projected Additional Training Requirements
12.
Based on the projection of manpower growth and the wastage of employees for
existing and forecast new hotels, the Training Board has projected the additional manpower
requirements of the industry for 2004 as follows:
Projected Additional Training Requirements for 2004
No. of
Employees
(2003/2004)
Estimated Additional
Training
Requirements
Managerial and Professional
1 424
418
Supervisory and Technician
5 854
1 691
Craftsman
2 566
926
Clerical
1 950
729
Operative
9 629
3 578
Secretarial and Others
492
_____
176
______
21 915
_______
7 518
______
Total
Recommendations
13.
The recommendations of the Training Board are as follows:(i)
The Training Board is of the view that the existing 21,915 strong
in-service employees would need upgrading and updating training to
remain competitive and efficient to cope with the increasing customer and
business demand.
(ii)
The Training Board supports the Skills Upgrading Scheme (SUS) for the
hotel industry.
Courses under the hotel SUS scheme include:
Language Course in English (Food and Beverage), Language Course in
English (Rooms Division), Putonghua in Hotel Industry, Concierge and
Security Service, Food and Beverage Service as well as Cleaning and
Maintenance Service. Both employers and employees should make
use of the Continuing Education Funds and various government funded
skills upgrading schemes for further skills enhancement.
(iii)
The Training Board is of the opinion that there is an urgent need to
upgrade the standard of English and Putonghua. Providing more
opportunities for education and training in the hotel industry would
further raise service standards and staff quality. More education and
training are needed to upgrade the expertise in sales and marketing,
information technology applications, cost control, yield management
skills and techniques, public relations and media handling procedures
and skills. Knowledge of the China market is also of growing
importance.
(iv)
The Training Board encourages employers to provide in-house training
and/or sponsor their employees for life-long learning and continuous
professional development to upgrade their knowledge and skills.
(v)
The Training Board will continue to support and sponsor out-centre
training courses and organize conference and experience-sharing
seminars for the practitioners in the industry.
(vi)
With many new hotel projects on the drawing board and competition for
staff from neighbouring areas, the demand for well-trained staff at the
operative and supervisory levels will be significant in the future. The
Training Board is of the view that increased provisions for further
expansion and upgrading of the training facilities and capacity must be
sought to cope with the manpower demand.