Importance Of The Hospitality Employment Is Paramount

Published Date: 02 Nov 2017

Introduction

The importance of the hospitality employment is paramount in both the developing and developed countries alike and this has been confirmed by the World Travel and Tourism Council (WTTC). As per the statistics generated by the WTTC, tourism and hospitality industry employs over 230 million employees worldwide which accounts for almost 8.7% of the total jobs (World Travel and Tourism Council, 2006).

As such, it is important to establish what jobs constitute hospitality and tourism industry. Academics, policymakers and industrialists have attempted but failed to establish one commonly accepted definition of what a tourism and hospitality industry is and encompasses. The inherent reason behind this is the overlapping of many activities in both these and many other industries and so to avoid inaccuracy, definition as stated by People 1st, the Sector Skills Council for the hospitality, leisure, travel and tourism sector in the UK, has been used (People 1st, 2006). This definition suggests that this industry is constituted by the following 14 sub-sectors:

Hotels

Events

Restaurants

Gambling

Pubs, Bars And Nightclubs

Travel Services

Contract Food-service Providers

Tourist Services

Membership Clubs

Visitor Attractions

Youth Hostels

Holiday Parks

Self-Catering Accommodations

Hospitality Services

According to a 2005 jobs survey in Australia, 61,000 new jobs were created in cafes, restaurants and hotels over the past five years. The survey also forecasted an annual growth of 2.2% over the subsequent five years. It is evident from the statistics to the hospitality industry is a key player in Australia's economy and although global tourism declined by 4.3% in 2009, the number of international tourists to Australia remained constant for that year (Hanko Hackberry Group Inc, 2011). This falling global trend can be attributed to the global recession but those industry competitors who employ effective HR development techniques and practices including effective orientation techniques for their employees enjoy fruitful returns.

On the other hand, there are inherent problems associated with this industry in Australia. One of the key problems is the excess of outbound tourists as compared to the inbound. Almost 30.2% of the population makes an overseas trip every year which compared to the 3.9% annual increase in the number of inbound tourists is quite staggering. The Total Inbound Economic Value (TIEV) is expected to annually increase by 3.8% in reach $ 71.7 million in 2019. A

Another problem is the skills shortage being faced in Western Australia which needs immediate addressing through long-term policy implementations. The government needs to provide investment friendly policies, provide diversity in the industry products and make specific and targeted improvements to the infrastructure of the industry. Such techniques would help to meet the challenges as well as help the cultural diversification of the workforce through encouraging the arrival of new immigrants. Currently, there is a severe shortage of trained chefs, bakers and pastry cooks. In a survey carried out by Restaurant and Catering Australia, there is a need of almost 2000 chefs, 2500 kitchen helpers and 1500 supervisors.

Cultural Diversity – An Overview

In general terms, diversity may be defined as the difference between people. The main reasons of diversification include factors such as race, gender and age (Lim & Noriega, 2007). Although the main workforce diversity relates to these factors, there are other similarly important factors that are termed secondary dimensions and have been defined by Reece & Brandt (1996) as cultural diversity. These factors include communication style, ethnic customs, religious beliefs, relationship status, as well as the general appearance of the employees.

Although the management of a culturally diverse workforce is difficult and requires effective and efficient management, the implications and advantages are also quite many. Hospitality industry is one of the industries that rely a lot on the cultural diversity and the social mix of the workforce (Christensen-Hughes, 1992). Instead of having to train employees from one ethnicity to deal with people from different races, religions and genders, it is easier and more beneficial to employ people from different regions. One benefit of this will be that employees would better understand and deal with clients from their ethnicity. Another benefit will be that the employees would learn from each other and it would save the training costs of the organisation (Hudson, 2008).

There are different factors that contribute to the cultural diversification of the workforce of an organisation. One of the main reasons is globalisation due to the rapid economic development around the world and the search of new markets by multinational corporations (Lim & Noriega, 2007). This combines with the translocation of competent, effective and eligible managers to effectively manage the workforce at sites in the new markets (Doherty, Klenert & Manfredi, 2007). Another important factor is the increase of immigrant labour and minority employees in the workforce (Elmuti, 2001). Another reason for the diversity in the workforce is the fact that this industry usually produces part-time jobs which are usually filled up by international students, women and disability groups (Mooney, 2012).

Cultural & Social Diversity in Australia

Australia is one of the countries which can boast a fully multi-cultural and socially diverse workforce. The main reason behind this is the strong hold of labour unions in the marketplace which allow for a good wage rate to the employees and hence, many skilled workers from around the world prefer to come and work in Australia. As such, the Australian hospitality industry workforce is composed of people from New Zealand, United Kingdom, United States of America, China, Japan, India and even some African countries.

This diversification of the workforce has allowed it to deal with the equally diverse inflow of tourists from around the world. Asian visitors would expect employees to be knowledgeable and efficient but not too friendly. They would also expect the employees not to shake hands and make eye contact, which is considered disrespectful in Asian countries. On the other hand, some European and American tourists expect knowledgeable responses as well as casual but courteous attitude from the workforce. Similarly, tourists from the United Kingdom are quite formal and expect people to be punctual, allow them privacy and personal space, and like to be addressed by formal titles (Charles Sturt University, 2011).

Conversely, international visitors and migrants are not the only cause of the cultural diversity of Australian workforce. Another major factor is the social diversity that exists within Australia. These include people from different cultural backgrounds, religions, traditions and ethnicities. Similarly, indigenous and disability groups are also two major factors that play an important role in the social and cultural diversity of the workforce (Charles Sturt University, 2011).