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Workforce and Migration Patterns of Sri Lanka's Tourism Industry X Workforce and migration patterns of Sri Lanka’s tourism industry Implications for the growth of the sector X Workforce and migration patterns of Sri Lanka’s tourism industry Implications for the growth of the sector Copyright © International Labour Organization 2021 First published 2021 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Licensing), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with a reproduction rights organization may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Workforce and migration patterns of Sri Lanka’s tourism industry: Implications for growth of the sector ISBN: 9789220343197 (print) ISBN: 9789220343203 (web PDF) The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. Information on ILO publications and digital products can be found at: www.ilo.org/publns. This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the International Labour Organization and can in no way be taken to reflect the views of the European Union. Printed in Sri Lanka Designed in Beyrouth, ALW Contents iii Contents Foreword .................................................................................................................v Abbreviations and acronyms .............................................................................vi 1. Introduction ...................................................................................................1 1.1. The tourism industry and its growth potential .......................................2 1.2. Structural constraints limiting the supply of labour ....................................................................................3 1.3. Methods adopted ..........................................................................................5 2. Overview of the tourism industry labour market in Sri Lanka ...........7 2.1. Overview of the tourism industry workforce in Sri Lanka ....................................................................................................8 2.2. Persistent labour shortages .....................................................................16 2.3. How is unmet labour demand addressed? ...........................................17 2.4. Labour retention strategies .....................................................................18 3. Factors determining the migration of workers from the Sri Lankan tourism industry .........................................................................................23 3.1. Insufficient economic opportunities .......................................................25 3.2. Poor working conditions ............................................................................27 3.3. Inadequate social protection ...................................................................29 3.4. Better employment opportunities in countries of destination? .....................................................................30 3.5. Implications of out-migration on the local industry.............................35 4. Recruitment processes facilitating the migration of tourism industry workers .........................................................................................................39 4.1. Regulatory framework ................................................................................40 4.2. Who uses licensed foreign employment agencies? ............................41 4.3. Recruitment process ...................................................................................43 4.4. Setting of wages ..........................................................................................44 4.5. Practices regarding contracts ...................................................................45 4.6. Information access in recruitment...........................................................46 4.7. The payment and incidence of recruitment fees and related costs....................................................49 4.8. Overall transparency .................................................................................52 5. Conclusions and recommendations ........................................................55 5.1. Attracting and retaining the industry’s workforce ..............................56 5.2. Migration of workers from the industry ................................................58 5.3. Recruitment processes ...............................................................................59 5.4. Looking forward ..........................................................................................60 References ............................................................................................................62 Annexes .................................................................................................................65 Annex 1. Breakdown of interviews conducted .............................................66 Annex 2. Quantitative analysis .........................................................................67 iv X Workforce and migration patterns of Sri Lanka’s tourism industry: Implications for the growth of the sector List of figures Figure 1. Education level of workers in the Sri Lankan tourism industry, by primary occupation and gender ...........................................................9 Figure 2. Categories of workers in the Sri Lankan tourism industry by ethnicity and gender ............................................................................. 11 Figure 3. Employment in the Sri Lankan tourism industry by age and occupation ...............................................................................12 Figure 4. Gender representation in the Sri Lankan tourism industry, by occupation (2013–17).............................................................................15 Figure 5. Wages in the Sri Lankan tourism industry, by occupation and gender ........................................................................25 Figure 6. Hours of work per week in the Sri Lankan tourism industry, by gender and occupation ........................................................................27 Figure 7. Departure for foreign employment in hotels by gender, 2018 ..........31 Figure 8. Occupations of Sri Lankan migrant workers in the tourism industry overseas, 2016–18 ......................................................................32 Figure 9. Main countries of destination for tourism industry workers registered with the SLBFE, 2016–18.........................................................32 Figure 10. Migration of workers through LFEAS and direct sources, 2013–17 ....41 List of tables Table 1. Employment in the tourism industry by category of work .................8 Table 2. Revenue per worker in the tourism industry compared to outbound migration trends ......................................................................33 Foreword v Foreword Many skilled workers from the tourism industry migrate overseas in search of better opportunities. Correspondingly, Sri Lanka’s tourism industry has been beset by labour shortages even as it has been singled out as a key growth sector and contributor to the national economy. This intersection of overseas migration of skilled workers and labour shortages in the local tourism sector has not been sufficiently researched. This report attempts to address this gap by: considering factors that drive workers from the Sri Lankan tourism industry to migrate overseas; understanding the impact of labour turnover on the local industry and identifying the recruitment channels workers use to secure labour market opportunities overseas. The Centre for Poverty Analysis (CEPA) was commissioned by the ILO Country Office for Sri Lanka and the Maldives to conduct this study with the aim of better understanding decent work deficits that may push workers away from the local market and to investigate how workers navigate transnational labour supply chains in seeking jobs overseas. Informed by both secondary and primary data analysis, the evidence in the report is relevant for stakeholders in the foreign employment sector, specifically the Sri Lanka Bureau of Foreign Employment, the State
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