Labor Shortage in the Tourism and Hospitality Industry

Abstract

Labor force has been found to be an important determinant of economic development and explanatory of international differences in aggregate economic growth or productivity. Changes in the supply of and demand for occupational labor or even skills are normal features of market economies. Tourism and hospitality activities expansion is limited not by financial factors, but rather by human resources crisis in terms of qualitative shortage or quantitative shrinking. In hospitality industry context, unsocial working hours is the main undesirable feature of working condition. Some occupations may require split shifts, night and weekend work, or downtime between productive periods. In the tight labor market, such high entry requirements make it difficult for the organization to respond quickly to the occurring shortage in the work environment. In case of experiencing a labor shortage, companies may need to take advantage of lower cost technology and automate routine job tasks. Substituting technology for labor is sometimes a viable solution of dealing labor shortage.

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