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The Tourism Sector in British Columbia: Literature Review, Labour Market Projections and Training Gap Analysis

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The Tourism Sector in British Columbia: Literature Review, Labour Market Projections and Training Gap Analysis THE TOURISM SECTOR IN BRITISH COLUMBIA: LITERATURE REVIEW, LABOUR MARKET PROJECTIONS AND TRAINING GAP ANALYSIS Presented by CS/RESORS Consulting, Ltd. And Geoffrey Bird, M.Sc. With Ruth Emery, Consulting Economist FINAL REPORT Contact: Marylee Stephenson, Ph.D. President #2 - 1726 Commercial Drive Vancouver, BC V5N 4A3 Ph: 604-253-3554 / Fx: 253-9533 <[email protected]> www.csresors.com September 30, 2002 THE TOURISM SECTOR IN BRITISH COLUMBIA: LITERATURE REVIEW, LABOUR MARKET PROJECTIONS AND TRAINING GAP ANALYSIS Table of Contents HIGHLIGHTS OF THE REPORT............................................................................................. ii I. CONTEXT OF THE STUDY ...........................................................................................1 II. STUDY METHODOLOGY..............................................................................................2 III. FINDINGS OF THE STUDY ...........................................................................................4 A. Tourism Employment: Dimensions and Dynamics of the Sector...........................4 B. Overview Commentary on Labour Market Information Issues and Imbalances..................................................................................................................32 C. Tourism British Columbia Scenario ........................................................................33 D. Student Outcomes Overview: Overall Employment, Utility of Programming, Distribution with Tourism Occupations ........................................37 E. Inventory of Tourism Training.................................................................................64 F. Reflections on Challenges, Requirements and the Recent Policy Changes, Arising from the Analysis of the Inventory of Existing Tourism Training Programming..............................................................................................................77 IV. IDENTIFICATION OF TRAINING GAPS AND RECOMMENDATIONS ............84 A. Review of Main Findings...........................................................................................86 B. Recommendations on Training Gaps.......................................................................92 APPENDICES A. Training Inventory Summary Charts B. British Columbia Direct and Tourism-Related Employment – 1984 to 2000 C. Bibliography CS/RESORS – Final Report i HIGHLIGHTS OF THE REPORT ON THE TOURISM SECTOR IN BRITISH COLUMBIA: LITERATURE REVIEW, LABOUR MARKET PROJECTIONS AND TRAINING GAP ANALYSIS CONTEXT OF THE STUDY The importance of the tourism industry in British Columbia cannot be overstated. In 2000, tourism generated 111,890 jobs, serving as one of the largest sources of employment in the province. In addition, tourism activity in British Columbia generated $4.5 billion dollars in gross domestic product, an increase of nearly 4% from 1999. Major stakeholders in the tourism industry in British Columbia established the BC Tourism Human Resource Task Force in October, 2001. A key goal is “to generate a five-year workforce development strategy for the …tourism industry.” This document is the final report of a study with the following components: ➢ A sector-specific labour demand analysis ➢ A training program analysis (including student outcome analysis) ➢ A gap analysis, with accompanying policy recommendations The methodology included: an intensive review of tourism-related labour force data – including a limited historical overview and projections to the year 2010; a literature review; review of tourism curricula and programming in public and private delivery sectors; and interviews with 22 key respondents coming from the government, education/training deliverers, and the private sector/industry associations. The Working Group provided very useful input periodically throughout the process. The coverage ranged from a broad-based, province-wide analysis of direct tourism and tourism- related labour force to a focus on six main sectors of tourism: Accommodation; Food and Beverage; Transportation; Travel Trade; Adventure Tourism and Outdoor Recreation; and Attractions. HIGHLIGHTS OF FINDINGS BY MAIN TOPICS A. Tourism Employment: Dimensions and Dynamics of the Sector The industries (according to standard definitions and classifications) described in this report as having a direct role in providing tourism services are: • Accommodation and food services, reported as contributing close to 1.9 billion dollars, or 41.4 percent of tourism GDP. • Transportation and communication, contributing just under 958 million dollars, or 21.2 percent of tourism activity. CS/RESORS – Final Report ii • Wholesale and retail trade, with about 806 million dollars, contributes 17.8 percent of the tourism total. • Other services, with 327 million dollars provides 7.2 percent of tourism GDP. • Amusement and recreation at 262 million dollars accounts for 5.8 percent of tourism activity. • Finance, insurance and real estate, with 216 million dollars of tourism activity, makes up 4.8 percent of the total. • Public service, which contributes almost 67 million, or 1.5 percent of tourism GDP. • Leisure and personal services, measured as providing for 18.4 million dollars or 0.4 percent of tourism GDP. The total number of persons employed in tourism-related work in BC, using 2001 data, was 266,900, which was an increase of 4% over the previous year. The distribution of workers within the tourism industry for the six main sectors is: Food and Beverage: 47% Transportation: 17% Accommodation: 16% Adventure/Recreation: 9% Attractions: 8% Travel Trade: 3% In terms of future demand, the picture is one of modest optimism. The comparison of current levels of employment, of the projections developed by the research team based on an aggregation of labour force statistical projections, and on the projections of Tourism British Columbia, based on their Growth Strategy for expansion of five of these six sectors of the industry are as follows: Accommodation Services Current Employment 43,600 2010 Employment Projection - Base Scenario 50,000 2010 Employment Impact - Tourism British Columbia Growth Strategy 62,750 Food Services Current Employment 124,200 2010 Employment Projection - Base Scenario 154,000 2010 Employment Impact - Tourism British Columbia Growth Strategy 168,500 Adventure Tourism Current Employment 23,400 2010 Employment Projection - Base Scenario 31,300 2010 Employment Impact - Tourism British Columbia Growth Strategy 36,500 Attractions Current Employment 22,300 2010 Employment Projection - Base Scenario 29,000 2010 Employment Impact - Tourism British Columbia Growth Strategy 30,300 CS/RESORS – Final Report iii Travel Trade The base case scenario suggested that it would be a struggle for this sector to even maintain employment levels over the coming decade, and that this would only be done if the products and services provided by the travel trade were enhanced. Increasing tourism activity, as suggested by the Tourism British Columbia growth strategy would provide further support for this sector. However there are still technology impacts, Internet booking and loss of commission fees which will hold back employment growth. Impacts on employment from the Tourism British Columbia scenario are expected to be a relatively small growth, about 500, in employment levels by 2010. B. Overview Commentary on Labour Market Information, Issues and Imbalances The various statistical measures on employment trends and on workplace and occupation characteristics paint a picture of a relatively balanced tourism sector labour market. A further review of HRDC's local labour market information reports and occupational profiles (many available on HRDC's community websites) and the analysis provided in the BC WORK FUTURES publication also confirms that, again at a general level, the tourism sector is not experiencing chronic shortages of workers. In some cases, information on unemployment and EI program recipients shows that, in many tourism occupations, workers often experience periods of unemployment. This is consistent with a work area that has a large component of seasonal work. Certain occupations, especially cook and chefs, have been discussed as providing opportunities for job seekers. This is mainly because of the large size of this occupation as well as above average employment growth rates. Local labour market information for some areas has, over the years, reflected the difficulty in recruiting and retaining skilled workers, especially high-end chefs, in some more remote or very fast growth locations within the province. There are some wider labour market environment aspects that need to be considered in assessing how future demand, supply and imbalances might look. • Overall the population is getting older. The youth population is declining as a share of the overall adult population and as a share of the labour force. The numbers of young persons entering the labour market is lower than it was a decade ago and this will remain a challenge. • At one level this demographic situation will reduce the ready supply of young workers and students available for the large seasonal demand in many tourism occupations. • Immigration, also a staple for providing a ready labour supply of workers for less skilled jobs during the immigrants’ transition period, is also changing to emphasize entry of those with higher education levels and good official language skills. Continuing flows of family members will continue to provide some labour supply but there could be an impact.
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