Divining the future of tourism work

Tourism is one of the most labor-intensive industries, accounting for one in every 11 jobs in the Philippines. It accounts for more than 12 percent of gross domestic product, but more importantly, it is also one of the most inclusive.

It provides jobs not only to the well-educated executives of hotels and resorts for instance, but also livelihood to people from communities where tourism thrives, like the boatmen and the weavers.

However, it is also a sector vulnerable to challenges that can disrupt or threaten the growth it enjoys.

Among these are three issues that can be both positive and negative for the industry:

Technology and the rise of the platforms. When travel was disrupted by technology that transformed the sector into an online, do-it-yourself market, it displaced many traditional players. Hotel/hospitality marketing had to evolve and follow this lead. Booking online became the thing. The workforce, used to doing their jobs using traditional practices, had to upgrade their skills if they were
to stay in this business where the rules of engagement are changing.

Artificial intelligence is being used for telephone and call center services; robots can now man the front/reception desks of some hotels in other countries. This is changing the parameters for these jobs and it is only a matter of time when we see this replicated in other areas of operation.

Platforms like AirBnB encroached into the hospitality business when travelers quickly adopted to the idea of having a home away from home rather than stay in “impersonal” hotels. This affected occupancy rates, forcing properties to find alternative sources of revenues, many even drifting into running serviced apartments to survive the disruption, and to take advantage of these changing preferences.

The shift of the educational system to K-12. Reforming basic education through the K-12 was a significant move to keep Philippines in step with global educational standards. Its implementation triggered innovations in courses and curricula among more progressive schools, but this shift is also expected to create a workforce vacuum expected to be most felt in 2020. The additional two years in middle school will mean a dearth of students graduating from their courses. As a predominantly service-oriented industry, tourism relies heavily on the quality of experience that visitors would have in their destination of choice. Human resource is vital to the industry’s growth but may be in shortage as the transitions happen.

The tourism industry that is still largely informal. The micro, small and medium enterprises outnumber large corporations across industries, accounting for more than 60 percent of employment. Many of these small firms face challenges in financing access that limit their capability to expand their operations. Compliance with labor standards/laws and regulations remains low. The peaks and valleys of market demand are fueling a growing gig economy and the tourism industry is no exception. While this can create new opportunities especially for the millennials who opt to freelance, it also can put at risk the social protection of these types of “contractors” who are not as structured as formal enterprises where benefits contributions are mandated.

These three are industry-critical because they can significantly impact human capital development.

If tourism is to continue being a major driver of both economic growth and employment, it must look at the impact of these issues that are changing or will change the industry landscape and the skill sets required to do certain jobs.

Every piece of the tourism puzzle must be put together to paint the big picture that will take the industry to the next level.

Tourism must plan for the future of work in a changed environment. It must be ready to rise to the challenges and mitigate the risks, to prepare the workforce for the shifts and provide industry stability despite disruptions.

There must be a cohesive, industry-wide national tourism human capital development plan, one that can be replicated in other industries as a critical first step in achieving this preparedness.

The results can be subsets toward a national human capital development framework.

It is a big task most especially because it requires an honest-to-goodness audit of the present dynamics, and an openness to set aside practices that have become barriers for real development.

There must also be willingness to cut across boundaries and work in concert with various sectors because mapping the future of work will need an integrated view using wider lens—no single sector will have all the answers.

The government, the businesses, the academe or the training institutions and the individuals—all should actively engage in drawing this road map and arm tourism for the next steps:

The government can adopt transparent and inclusive governance models through conducive policy environment for human capital development, including strategies on how social care and protection can be provided especially for the growing number of people moving toward gig economy. Policies should address gender and inclusion issues, encourage entrepreneurship and ensure better livelihood opportunities for people in communities.

Tourism and other industries for that matter, the biggest beneficiaries of workforce development, should help define where they are heading, what skills will be needed and what forms of employee engagement will be required. The business sector should make a human capital investment by augmenting fund support to the workforce through training and retraining, upgrading of skills, retooling and providing employment with just and fair compensation, including social protection (The Changing Nature of Work, World Bank).

The academe and training institutions should be up to date with evolving business practices, job markets and skill requirements and enhance the acquisition of learning. K-12 curriculum must integrate skills in various areas of tourism work such as tour guiding, housekeeping, culinary arts and the like or those jobs that may arise as an offshoot of the Fourth Industrial Revolution. Students will then have the option to work right after graduation and/or continue to tertiary education and develop further their cognitive, socioemotional, critical thinking and other skills that will remain in great demand to fuel innovation in the workplace.

All individuals, whether those already working or still studying, should actively engage in improving their skills and knowledge and learn to be flexible and adaptable to the changing job and industry requirements.

These stakeholders working together and pursuing a common agenda that will be defined in this national tourism human capital development plan, can create and prepare a larger pool of skilled workforce ready to be harnessed, so that the Philippines can remain competitive in the tourism market.