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Manpower shortage biggest challenge to hospitality industry

DUBAI - A shortage of manpower poses the biggest challenge to the UAE tourism industry, according to industry management and studies.

The Dubai Department of Tourism and Commerce Marketing (DTCM), in outlining government strategies for the sector, estimates 10 million guests to be hitting Dubai's shores in 2010. By 2015, the aim is to attract 15 million guests.

MENA Travel Awards organiser CHA International President Dr Sam Saker estimated staff needs at an average ratio of five staff to one room.

This ratio puts staff needs at more than 50,000 people by 2010 and by 2016 a further 150,000 staff would be needed, he observed.

He, however said that the ratio of staff per room in luxury hotels was likely closer to seven to one. Compounding this is the issue of manpower retention. According to estimates, 20 per cent of staff will stay with their current employer and industry management predict poaching to dominate staff recruitment.

A report by world hospitality recruitment website Catererglobal.com to be launched at the Arabian Travel Market this week, surveyed more than 3,000 hospitality professionals across the Middle East.

It estimated only 10 per cent of staff would look for career opportunities within their current property.

'The challenge is to match growth with talent so service levels are maintained. At the same time retaining that talent within the hospitality industry via training and career progression opportunities is essential,' said Peter Willis, Sales Manager, Catererglobal.com.

'Hotels must look at what they offer to candidates in terms of salary, benefits, and accommodation in an increasingly competitive landscape.'

Participants in the Arabian Hotel Investment Conference, including hotel school Accor Hospitality, said the strain on the sector was already beginning to show.

'The main issue is how to hold on to the high-service levels that we have achieved across the region,' Accor Hospitality's Managing Director Christophe Landais said.

'Inconsistencies in service quality will be detrimental for Dubai as a tourist destination.'

Crux of the issue

It was a common theme with most managers that the crux of the issue was attracting and retaining the right staff.

'The most important element for any business is people,' Dr Saker said. 'That saying turned out to be wrong. It is the right people that are important. People will be stealing staff for double salaries.”

Dr Saker said, 'It's happening now. What's going to happen when it’s 300 to 400 per cent growth in the next few years?'

However 61 per cent of Catererglobal.com survey respondents said they would be looking to stay in the Middle East - a shot-in-the-arm for the regional industry given the increasing demand for hotel staff from the emerging markets of Asia and India.

'Historically the Middle East has relied on a highly dependable Asian source of candidates. With the growth of these emerging markets, especially in India, we are now seeing the flow of candidates change direction,' said Willis.

'The resource pool obviously needs to be extended and some HR teams are actively targeting new areas such as South America and Africa.'

Tom Meyer, Area General Manager, InterContinental Hotels Group, Dubai Festival City, also believes the global approach will be a great help in recruiting the right mix of internationally- and locally-experienced people.

'Due to the massive growth of hotel industry in Dubai, it is getting more and more difficult to recruit talented individuals locally. However, we have great resources internationally and will draw on these to create a good balance.'

Meanwhile, Abu Dhabi-based Rotana Hotels currently retains more than 6,000 employees and has mapped out plans to increase its manpower some 150 per cent by 2010.

'In line with our expansion plans, Rotana is treating team retention and extension as a key project. It uses wide-spread surveys, competency programmes and has centralised recruitment,' said Rotana's Executive Vice President & COO, Imad Elias.

'Equally important, we have widened our footprint and added new markets in our search for the right team members,' he said. Crucial to solving the problem is the establishment of further training facilities, especially in-house hospitality schools.

'We need a faster and higher level of training and especially in house with international hotels,' Grosvenor House Business Development Director Siggi von Brandt said. 'There needs to more facilities, more hospitality institutions and schools.'