Proposed Tourism Labour Shortage Policy In Australia - Samples

Question: Discuss about the Proposed Tourism Labour Shortage Policy In Australia. Answer: Introduction The tourism industry is one of the largest exports sectors in Australia and contributes around $ 40 billion to the general economy of the country. The sector is said to largely benefit from the continued economic growth in the international source markets as well as the falling Australia dollar value. Our agency, the Tourism Australia is an Australian government agency that is responsible for promoting the country to the global tourism world as a tourism destination for business and leisure (Wakelin-Theron 2015, p. 248). The major objective of the agency is to increase the economic benefit realized from the tourism industry and also support the industry growth strategy 2020 which aims at growing the industry overnight expenditure to $ 140 billion. The agency is active in 16 Australian tourist markets and aims to grow demand for tourism experiences by promoting a unique experience and attributes in the industry which will entice people to visit. With the assumption of continued economic growth, political stability and favorable climate the industry is projected to grow at an estimated growth rate of 6 percent annually (Moid Alam 2016, p. 37). Such growth will, therefore, contribute to increased demand for skilled labor force in the industry. However, the industry is reported to have a shortage in its labor market with a current need of over 36000 employees in the care and restaurants departments. Lack of skilled and experienced labor force has affected the quality of service provision in the industry. This study, therefore, seeks to develop a proposal by the committee formed by the Tourism Australia agency, for the development of a policy which will help in addressing the labor and skills issues affecting the industry and how its implementation will help the industry realize its development strategy for the period 2015 to 2020. Background context of the labor shortage issues in the industry According to the Australian Tourism Labour Force Report of 2015, the Australian hospitality and tourism industry is reported to experience labor or skill shortage. In their report it is said that it has become harder than before to find and recruit the required quality and skilled employees who can be relied upon by the industry to meet the skill standards of various positions, fit in the kitchen team as well as adapt to the culture of the venue and stay for a longer term (Argent et al. 2014, p. 311). Such concerns have led to many arguments based on the reasons why the industry is not attracting the relevant skilled labor force or even retaining the existing ones for a longer period. The report provides that an additional 123 000 workers will be needed by the year 2020 in the tourism and hospitality sector. Such a shortage in the industry is also believed to affect or have a great impact on the productivity and growth of the industry if appropriate measures are not put into place. Also according to the report released by Deloitte Access Economics, there was a labour gap identified of 38 000 workers currently in the industry in 2015 a number that is estimated to increase to 123000 worker shortage as reported by the Australian Tourism Labour Force Report by the year 2020 (Wortman et al. 2015, p. 142). Of this estimated amount, 56 600 which translates to 48 percent of the total is estimated to be the likely demand for skilled workers and also reports an increased strong demand for chefs, caf, and restaurant managers. Therefore, labor shortage is said to be the greatest challenge facing the industry whereby the shortage of skills is said to slow down the productivity and also dampens the growth aspects of the industry. The need for more skilled labor force in the industry is due to the fact that due to the increased demand, the industry is expected to deliver exceptional visitor experiences and customer services in order to meet the expectations of the discerning international visitors. The industry has a projected target of doubling its overnight expenditure to $ 140 billion by 2020 and fears surrounding the industry claim that lack of skilled labor may affect the industry and prevent it from realizing such goals or targets (Stoeckl et al. 2014, p. 792). A report by the Deloitte Access economics provided that the reported inability to find workers with the right skills was seen to be the main reason why the industry faced difficulties in recruiting staff. The Australia Department of Employment in 2015 projected an increase in employment growth in the caf, restaurant, and takeaway food services sector. Therefore the increased demand has been the most contributing factor to a labor shortage in the i ndustry. Labour shortage in the industry has also been having also resulted from lack of trained workers in the industry or the number of existing qualified and skilled workers cannot meet the increasing demand in the industry. Lack of workforce development initiatives in the industry has led to increased labor shortage gap. Such workforce development initiative focus on all aspects of a business workforce and ensure or promote the recruitment of staff with the right skills, experience and attitudes, provides career progression opportunities, advocates for good remuneration packages for employees as well as training and development to shape the existing skills (Dobbs Madgavkar 2014, p. 203). The industry is differentiated from its competitors globally on the basis of the quality of services provided to the tourists and therefore the increased need for the skilled labor force. The Australian government was also reluctant on outsourcing employees from other nations on immigration of labor force through immigration ban policies. There is a call therefore for the government to regulate its policies by allowing more visas by considering overseas staff to cater for the existing labor force gap in the market (Garca Hormiga 2017, p. 216). The report by Deloitte Access economics as examined form the insights above highlights the need to reform the labor market through the relevant improvements to the vocational education system. They present the argument that the idea of a labour shortage in the industry is not a new thing but there is a great need to develop a paradigm shift in thinking about skilled migration or the idea of considering overseas staff and training of the Australian local labor force. The labor shortages have been evident since the industry is usually seen by some people as a source for temporary employment and therefore many individuals have not committed themselves to the long-term agenda of the industry. The employees are supposed to view the opportunities as long-term career option just as careers offered in other industries (Wefersov et al. 2016, p. 55). This has been the main reason why the companies in the industry could not retain employees for longer periods. Lack of combining the use of both highly skilled and semi-skilled labour force in the industry has also intensified the labour force gaps in the industry as the industry has continued to advocate for attraction of highly qualified, experienced and skilled labour without taking into consideration the development plans which aim or focus on training the semi-skilled individuals into great skilled employees. There has also been an increased lack of recognition of transferable skills within the industry in relation to other industries which leads to slow growth and low productivity as businesses learn from each other by comparing the different strategies employed in achieving certain goals and evaluating how the skills used in other industries can help improve the performance of the tourism industry (Sulaiman 2016, p. 67). Lastly, the industry has faced a labor shortage due to its inability to invest in professional development and especially by the small businesses and in accredited training which aims at providing the employees with the right skills and keeping them at par with the current industry changes. Statement of need for the Tourism plan or policy The development of a tourism plan will be very important to the businesses in the tourism industry, the government of Australia and to other stakeholders in the business. This is because the plan will provide possible solutions and also provide a framework for addressing the greatest challenge faced in the industry of labor shortage (Healy et al. 2017, p. 2477). Before understanding why the plan or policy will be important for the various stakeholders in the industry it is important to examine the general objectives or goals of developing the plan. The objectives are guided by the fact that for improvement in terms of productivity to be achieved the greatest need of the industry is to offer quality services which will attract or entice their potential customers to pay more visits and hence the need to reform the current labour strategies and practices as well as individual thinking of the tourism industry. One of the objectives of the plan helps the businesses, the government as well as the other stakeholders in the industry to increase the supply of labor to the industry with the aim of delivering high-quality service standards which meets the demands and expectations of the visitors. The plan also aims to support the development and provision of sustainable employment conditions in the industry which will continue to attract and retain skilled workers or employees in the industry (Wanna 2015, p. 621). It also aims to ensure that education and training systems offered in the country in relation to the hospitality industry deliver the skills and knowledge required to accommodate the growing needs of individuals or personal development as well as the businesses in the tourism industry. Lastly, the plan or policy aims to support the employees and employers in the industry to address the current as well as the future workforce needs and create stability in the labour market. The plan or policy will, therefore, play an important role in the growth and development of the economy of Australia. The government receives a lot of revenue totaling to $ 40 billion from the industry and therefore the industry acts as an important source of revenue in the industry. The government is projecting an increase in revenue collection from the industry to an average of $ 140 billion by the year 2020 (Clemens et al. 2015, p. 1510). To actualize these development or growth targets by the government there is a great need therefore to develop effective policies which favor or enhance the development of skilled labor in the tourism industry. The policy will provide effective strategies which the government should undertake in order to improve the labor productivity in the industry. Government intervention is therefore required in the industry in improving the immigration policies which will favor the recruitment of overseas staff to cater for the increasing demand. This is beca use the plan advocates for the government to consider overseas staff since the current labor dynamics in Australia cannot meet the demands due to the existing labor force gap (Kahn 2015, p. 248). The government is also required to intervene in the development of curriculum in hospitality fields which equips the learners with the right skill development and one that can adapt to changes in the industry based on the tastes and preferences of their visitors. The tourism policy will help the business engaged in the tourism industry achieve its goals by becoming more profitable, attracting more customers and visitors due to provision of quality services, help them attract skilled workforce by advocating for training and development of the employees, help them solve the problem of retaining employees for long-term purposes in the industry to prevent shortages and future crisis in the industry and to help them develop effective working conditions for their employees which will improve their productivity in the businesses (Buxton 2017, p. 204). Most of the tourism businesses including the travel agents, the hotel and restaurant businesses, the accommodation and entertainment business have failed in managing their employees due to poor working conditions and lack of skilled employees. The plan or policy advocates for improved working conditions which will help the employees achieve their personal development as well as the organizational or bu siness development (Jumadi et al. 2017, p. 51). An effective policy or plan will, therefore, help the business grow in terms of achieving its targets and helping the employees attain their personal development. There are also other stakeholders in the tourism industry that may including the investors in various businesses and the community at large which supports the growth of the industry through culture and other development initiatives. The growth of the industry plays an important role in the overall development of the community welfare (Edgell 2015, p. 27). It helps in enhancing the culture of the land and improves the living standards of the community by offering employment to the local community members. Investors will be interested to invest in the industry in which they can see a potential for future growth, therefore a policy addressing labor shortage problem in the industry will act as an advantage to the investors as it will grow their confidence with the industry. Possible policy approaches to the proposed plan In order to implement the objectives of the plan or policy, the plan incorporates the actions of the government, the industry as well the business to take various actions which will ensure they achieve their set goals and objectives as well. The plan advocates therefore for the parties and stakeholders involved in the industry to support sustainable workforce structure. This goes to the businesses which need to develop the effective structure of employee development through remuneration packages, training and motivation (Izenbayev et al. 2016, p. 380). The individuals or employees are also recommended to consider making tourism a career choice as this will minimize the issues or challenges facing the industry or retaining employees as it will change the employees perspective that the industry offers a short-term measure for career growth. The plan advocates for the businesses to retain its quality staff by developing mechanisms such as promotions, rewards, compensation and other bene fits to reducing the problem faced by the industries in attracting qualified and skilled workers and in retaining the existing ones. The policy also advocates for the training of the existing workforce in the tourism industry. This comes due to the fact that the industry demands keep on changing yet there is a slow transition from the institution of higher learning offering training on hospitality skills to employment opportunities (McGrath 2016, p. 493). There is need therefore to ensure that the existing workforce is trained of the market dynamics in order to offer and meet the visitors expectations. The plan also advocates for support of the small businesses in the industry. The growth of the small-scale businesses in the industry has been projected to grow especially in the takeaways business; its growth will equally represent the growth of the general industry. The small businesses can meet the demands which the large industries cannot meet and therefore they should be supported and protected from stiff competition from private companies operating in the same markets (Sandbach, 2015, p. 6). Lastly the plan or policy advocates for initiatives which will grow the tourism workforce. The businesses, government, and other stakeholders should also invest in the development of the workforce for example by developing programs and initiatives which help in linking the suitable candidates with the prospective employers and provides mentoring support to apprentices while completing their training. This will help them build confidence with the potential employees with the industry and change their perspectives concerning their future career decisions in the industry. Proposed planning process for the proposed policy For the policy to be developed and implemented there is need to engage in consultations with the relevant bodies. It is therefore recommended that our tourism Australia agency should engage in consultations with the relevant stakeholders in the government including the government, the business involved in the industry which can be done to a representative sample of the companies involved as well as to the investors (Tabrett 2014, p. 86). Such consolations will help in identifying the key issues in relation to labor force factors that the stakeholders in their view think they can be useful in improving the service provision in the industry and contribute to growth and development of the industry. The stakeholders should also be involved in the implementation of the plan in areas where the plan requires the active participation and intervention. The implementation process is not always and therefore requires the effort of all the stakeholders including the community for effective imple mentation and success of the policy in addressing the current labor shortage crisis as well as prevents the projected future crisis in the industry (Sulaiman, 2016, p. 72). Conclusion The review of the policy should also be constantly done to ensure that it meets its set objectives and long-term goals. 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