Business Intelligence, Tourism

Why human capital investment in tourism is crucial for 2023 and beyond

The travel and tourism industry is one of the fastest-growing sectors in the global economy and is currently responsible for 1 out of every 11 global employment opportunities (WTTC Economic Impact Report, 2022).

Tourism employment provides long-term benefits to communities, including contributing to sustainable livelihoods through poverty reduction and socio-economic development. Tourism also creates opportunities for entrepreneurship growth and development by engaging the services of SMEs which provide products, services and offerings for the industry. 

The WTTC report on staff shortages in the industry indicated a global lack of adequate human resources in the industry, especially in developing economies such as Africa. This was also supported by the recent UNWTO Academy briefing on human capital development in the industry which highlighted the need for a well-trained tourism workforce for the industry going forward. 

 

What does this mean for tourism in Africa?

What this means is that for business leaders and CEOs in the industry, navigating the future of their organisations in the midst of global economic uncertainties will not be a one-man mission; the long-term success of the industry depends on how much is invested in upskilling the current pool of talent we have, and how we can attract and retain new talent. 

Tourism is labour-intensive, and with over 35 million jobs estimated in Africa for the industry in the next decade, the root causes of poor human capital development will need to be critically addressed. 

Human resources are an essential part of tourism, and employee and customer-centric organizations that
focus on best practices are more likely to retain them in the long run. Human capital can also be the deciding factor on whether tourism development in Africa becomes a success.

This provides an opportunity for a coordinated response by the public and private sectors to invest in the right amount of human resources to achieve sustainable, inclusive growth; the industry deserves a workforce that is:

  • Highly qualified in education, training, skill and experience at all skill levels
  • Highly motivated and with the right attitude to deliver world-class services to clients, investors and fellow practitioners
  • Able to add value to their organizations and see clearly defined career paths for growth in the industry.

 

Organizations must provide a positive workplace culture with a clear path to career development and promotion, inclusiveness and diversity.

 

What steps can business leaders take to invest in human capital in tourism? Here are 3 ways this can be adopted:

  1. Talent development and sustainability programmes for tourism industry practitioners across all levels,
    including owners and managers.
  2. Organizations must provide a positive workplace culture with a clear path to career development and promotion, inclusiveness and diversity.
  3. Remuneration and incentives for work – benefits and performance related bonuses can contribute to employee engagement and retention, employee satisfaction, improved efficiency and productivity and the ability to make better-informed decisions

We believe that by investing in tourism education through skills development programmes and knowledge-sharing initiatives, the future of work in Africa’s tourism industry can be attractive, secure and successful.

For tourism investors and practitioners, how are you investing in training and education for your team’s growth in 2023? Please let us know!

 

Resources

World Travel and Tourism Council Staff Shortages Report (2022) 

UNWTO Academy: Tourism Human Capital Development

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