Transcript The Role of Skills in Productivity Gains in the Tourism Sector-
The Role of Skills in Productivity Gains in the Tourism Sector A View from the Private Sector in St. Lucia
Presentation of Results of Hotel Survey & Background Paper By: Theresa Beltramo
Overview of Presentation
Macroeconomic Overview & Role of Tourism Results of the Hotel Survey Social Contract Needed- The Way Forward Main Messages
Slowing growth . . .
Per Capita Incomes (PPP) 1975-2004 40000 35000 30000 25000 20000 15000 10000 5000 0 1975 1979 1983 1987 1991 1995 Ireland Singapore Cyprus Barbados Mauritius
Caribbean
LAC 1999 2003
Services main growth driver. . .
Sectoral Contribution to GDP Growth (%)
100% 80%
Services
60% 40% 20%
Industry Agriculture
0% 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Source: World Bank (WDI), figures are medians for the Caribbean region
Tourism plays key role in economy
Antigua and Barbuda Dominica Grenada St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
T&T Industry GDP
% of Total 24.9
8.2
8.3
7.9
15.6
10
T&T Economy GDP T&T Industry Employment
% of Total 82.1
25.1
27.9
30.1
47.9
34.1
% of Total 34.8
7.7
8.2
9
16.5
9.2
T&T Economy Employment
% of Total 95 22.7
26.2
30.3
47.7
30.4
Bahamas Barbados Cayman Islands Cuba 18.6
15.8
12.8
4.4
56 52.2
37.6
13.7
26 19.8
18 3.9
Domincan Republic 8.8
25.5
7.7
Source:(2004) World Tourism & Travel Council Note: T&T Industry represents Travel and Tourism Industry or direct GDP or employment.
T&T Economy represents Travel and Tourism Economy both direct and Indirect GDP and Employment calculations.
69.9
58.3
47.4
11.8
22.2
Increasing competition in tourism market 100 90 80 70 60 50 40 30 20 10 0
South Africa Thailand Tourism Price Competitiveness Index Caribbean average Indonesia Dominican Republic Barbados Jamaica
Source: WTTC
Fiji
Recent High Growth is a Window of Opportunity…
Antigua & Barbuda Dominica Grenada St. Kitts and Nevis
St. Lucia
St. Vincent & the Grenadines GDP Growth Rate (IMF) 2004 2005* 5.2% 3.5% 3.8% 3.1% -3.0% 6.4%
4.0%
4.3% 0.9% 4.9%
5.0%
4.9% Unemployment Rate (latest year) Adult Youth 4% 17% 13% 56% 9% 4% 19% 15% 24% 11%
39%
39%
Section II
Macroeconomic Overview & Role of Tourism Results of the Hotel Survey
Social Contract Needed- The Way Forward Main Messages
Hoteliers agree that Skills of workers are not adequate…
There is a clear mismatch between the skills demanded in the tourism sector and those supplied from the education system.
Top Skills missing include…
Professional Skills- in particular Management and Chefs Skills Entrepreneurship Skills or Self Initiative Soft Skills Ability to Learn
Other Feedback from Hoteliers in SL School curriculum in St. Lucia was seen as ill suited to meet the labor demands of the tourist industry.
Of the training institutions in place, the overarching feedback was the training was too basic and not synthesized with the hotel sector’s needs.
Training would be greatly improved if brought up to international standards and the private sector endorsed the need for accredited standards.
Some skills training exists…
Total Population in Age-Group 12-16 Secondary School Students Senior Primary School Enrolment School age cohort not engaged in formal education CARE Skills Participants NELP (aimed at adults) NSDC- Youth Apprenticeship Program Vieux Fort Technical Institute Sum of Skills Training Available for Youth (CARE, NSDC, and Vieux Fort) Secondary School age cohort not engaged in skills training or secondary school % of Secondary Age Population Not Enrolled in Any Skillls Training or School Totals
17610 12815 2244 2551 132 790 650 112 894 1657 9.4%
Difference
4795
Total Enrolment In NELP for Academic Year 2004-2005
Program
Academic Courses Cake Decorating Cate Decorating (int) Flower Arranging Information Technology Information Technology (int) Garment Construction Garment Construction (int) Carpentry Human Relations Electrical Installation Electrical Installation (int) Plumbing Refrigeration and Air Conditioning Navigation and Safety Music Intermediate Music Basic Small Engine Repair
Total Skills Courses Participants Total Male
113 4 4 0 28 7 1 1 14 3 22 15 13 11 6 4 6 11
150 263 Female
510 139 69 17 103 51 129 81 6 21 8 0 3 0 0 4 9 0
640 1150 Total
623 143 73 17 131 58 130 82 20 24 30 15 16 11 6 8 15 11
790 1413 % Male
18 3 5 0 21 12 1 1 70 13 73 100 81 100 100 50 40 100
19 19
Source: Ministry of Education, St. Lucia Statistical Yearbook 2005.
Labor Market Mismatch
Location Castries Castries Castries Soufriere Castries, Soufriere All Hotels Size L S All All S S, L Average time it takes to hire and replace a manager? (weeks) Average time it takes to hire and replace a skilled worker (weeks) Average time it takes to hire and replace an unskilled worker (days) 8.7 6.3 6.9 6.0 5.0 3.8 4.1 5.4 7.7 5.8 6.3 3.0 How much money the hotel spent independently of the government on training of employees in 2004? US Dollars 29,307 6,340 10,516 2,747 6.2 6.7 4.4 4.5 4.7 5.3 5,442 8,851
Level of Education Among Hotel Staff
Location Size Percentage of employees that have graduated from high school Percentage of employees that have completed some tertiary education
Castries Castries Soufriere Castries, Soufriere L S All S 85% 50% 29% 43% 62% 10% 13% 10% All Hotels S, L 49% Source: World Bank Hotel Survey and Author’s Calculations 14%
Percentage of employees that have some training in tourist related fields, such as hospitality management, etc
9% 4% 1% 3% 4%
Deepening the impact of Tourism
Required inputs Output High quality labor, physical infrastructure and security (destination management) Island as a destination $$$ Wide variety of tourism services: restaurants, entertainment, tours Enclave, All-Inclusive $$ Unskilled labor and poor physical infrastructure Cruise - $ Few backward and forward linkages
Section III.
Macroeconomic Overview & Role of Tourism Results of the Hotel Survey Social Contract Needed- The Way Forward Main Messages
Social contract needed…
Employers Top Five Skills Needed 1. Managers (22%)
2. Information and Computer Technology Professionals (14.6%) 3. Persons with People/Soft Skills (8.1%) 4. Building and Related Workers (6.5%)
5. Hospitality and Tourism Workers (6.5%) Providers Top Five Skills Needed
1. Educators/Teachers (41.2%)
2. Hospitality Workers (29.4%)
3. Building and Related Workers (29.4%) 4. Doctors (17.6%)
5. Managers (17.6%) Students Top Five Education and Training Needed 1. Management (31.6%)
2. ICT Training (15.6%) 3. Skills Training/Technical Vocational (15.6%) 4. Nursing (15.8%) 5. Technology (10.5%) Human Resource Development Needs Assessment Survey UWI
Do youth embrace tourism…
60% 50% 40% 30% 20% 10% 0% Adult Youth
If you remember anything, remember this…
Macroeconomic Overview & Role of Tourism Results of the Hotel Survey Social Contract Needed- The Way Forward Main Messages
Main Messages
Slowing growth per capita since 1980.
Growth slowdown partially as a result of low relative productivity.
Sea and Sand tourism is reaching its maturation and the OECS would benefit from moving to higher end services Current high growth & WCC is an opportunity. Hoteliers in SL point to a skills mismatch Some skills training exists in SL put is too basic to meet the hotel sector’s needs and would benefit from accreditation on a regional level.
Skills gained in secondary school must be relevant to the world of work. The rural issue A social contract is needed