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Skills shortages in Phuket′s tourism industry

Thailand’s hospitality industry is about to suffer a huge skills shortage that could leave businesses reeling if corrective measures weren’t taken soon, leading experts in human resources development have warned. That skills shortage will also hit hotels and resorts in Phuket.

The message was delivered by Dr Sjoerd Gehrels, Professor of Applied Sciences, Innovation in Hospitality, at Stenden University of Applied Sciences, The Netherlands, speaking at the 2015 Global Hospitality, Tourism Marketing & Management Conference in Bangkok last week.

Dr Gehrels was one of the guest panel speakers on the topic ‘The Effects of Tourism Development towards Business Expansion’ held during the tourism conference, conducted at the Pullman Bangkok King Power hotel on June 27-29.

While Thailand is often on the top of the list for best destinations, Dr Gehrels said Thailand was also recognised by a recent World Travel and Tourism Council report as being at risk to meet manpower demand.

“Thailand is about to experience the world’s biggest deficit of human resources (talent) for the Travel & Tourism Sector of -3.2% (negative balance between demand and supply of talent) from 2014-2024,” Dr Gehrels told the attendees.

This highlights the shortage of qualified applicants that Thailand’s tourism industry acknowledges has already begun, he added.

Dr Gehrels, an expert in human capital development, focused on employment branding as a strategy to counter the skills shortage, and presented relevant research results to support his claim.

Employment branding refers to the association between employees and their organisation and includes potential strategies companies can use to attract and convince prospective employees, he explained.

“Employment branding combines marketing and recruitment practices to allow customers, employees and other stakeholders, to recognise the desired organisation image,” he said.

“Employment branding helps companies to increase employees’ brand commitment making it more likely that they stay longer. There is evidence that companies in the hospitality industry that have started to implement a strategic employment branding vision are more conscious of their human resources management practices.”

Fellow panelist Andrew J. Wood, a 24-year veteran Thailand hotelier and the Immediate Past President of SKÅL International Thailand, presented a historical perspective to tourism development in Thailand.

He also challenged Thailand’s tourism institutions to keep pace with the private sector’s need for manpower.

“Future employees must have a sincere spirit of hospitality, with a passion for service and enjoy making others happy,” he said.

During his presentation, Mr Wood identified that Thailand’s tourism industry in 2014 accounted for 5.383 million jobs, which represented 14.1 per cent of the country’s total employment.

“This will rise to almost 8 million jobs by 2024,” he said.

“The skills shortage will affect the whole of Thailand, including Phuket, with tourism arrivals set to double by 2025 – this year 29 million tourists will visit Thailand,” Mr Wood told The Phuket News.

“In Phuket new hotels will add an additional 4,582 new rooms from 23 hotels which are presently under development. Approximately 40 per cent are forecasted to open in 2015, followed by another 22pc in 2016. This trend is absolutely set to continue.”

By 2025, Thailand will need 9 million travel and tourism employees up from 5.4 million currently – a 40pc increase, he noted.

“For Phuket, the industry will need to get creative. They will need to develop a human resources procurement plan in much the same way as they develop an annual marketing plan,” said Mr Wood.

What can travel and tourism business do?

“Employment branding will be important. Develop a buzz. Have potential employees wanting to join your company. Good benefits, great training and a fun, comfortable environment will all assist in securing team members,” Mr Wood urged.

“As we have seen in Europe, don’t just look at domestic employees for your potential labour pool. Whilst more challenging, I absolutely believe that we will see a surge in foreign migrant workers especially from our poorer neighbours.

“With China and Russia having become our key feeder markets, savvy owners are already employee native speakers from these countries. A trend I also see as continuing.

The downside is going to be that manpower costs will increase as competition increases and standards may slip, he added.

“More so today than ever before, general managers must be focussed on HR and in particular retention and training,” Mr Wood warned.