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Developments and Challenges in the Hospitality and Tourism Sector

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Developments and Challenges in the Hospitality and Tourism Sector GDFHTS/2010 INTERNATIONAL LABOUR ORGANIZATION Sectoral Activities Programme Developments and challenges in the hospitality and tourism sector Issues paper for discussion at the Global Dialogue Forum for the Hotels, Catering, Tourism Sector (23–24 November 2010) Geneva, 2010 INTERNATIONAL LABOUR OFFICE GENEVA Copyright © International Labour Organization 2010 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 Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. Libraries, institutions and other users registered in the United Kingdom with the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP [Fax: (+44) (0)20 7631 5500; email: [email protected]], in the United States with the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923 [Fax: (+1) (978) 750 4470; email: [email protected]] or in other countries with associated Reproduction Rights Organizations, may make photocopies in accordance with the licences issued to them for this purpose. ISBN 978-92-2-123947-5 (print) ISBN 978-92-2-123948-2 (Web pdf) First edition 2010 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. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected]. Visit our web site: www.ilo.org/publns. Printed by the International Labour Office, Geneva, Switzerland Preface This paper has been prepared by the International Labour Office as a basis for discussions at the Global Dialogue Forum on new developments and challenges in the hospitality and tourism sector and their impact on employment, human resources development and industrial relations. The Governing Body of the ILO decided at its 304th Session (March 2009) that the two-day tripartite Forum would be held in Geneva, from 23 to 24 November 2010; would be composed of seven Worker and seven Employer participants, selected after consultations with the respective groups of the Governing Body; and would be open to representatives of all interested governments. Its purpose would be to evaluate and discuss new developments and challenges for the tourism sector and their impact on employment, human resources development and industrial relations. The Forum could adopt conclusions that would be the basis of subsequent action by the ILO and its constituents. The Global Dialogue Forum is part of the ILO‘s Sectoral Activities Programme, defined by the ILO programme and budget, aimed at assisting governments, employers‘ and workers‘ organizations to develop their capacities to deal equitably and effectively with social and labour problems in particular economic sectors. Sectoral action programmes, technical cooperation, advisory and research activities, and tripartite meetings contribute to ILO strategic objectives. Such meetings bring together a cross- section of government, employer and worker representatives from various countries, and aim to strengthen tripartism and promote social dialogue at the international level. GDFHTS-R-[2010-08-0058-1]-En.docv2 iii Contents Page Preface ............................................................................................................................................... iii Acknowledgements ........................................................................................................................... vii Abbreviations and acronyms ............................................................................................................. ix Introduction ....................................................................................................................................... 1 Defining the hotels, catering and tourism sector and the scope of the issues paper............... 1 1. Structure and characteristics of the sector ............................................................................... 5 1.1. The hotel, catering and tourism industry ........................................................................ 5 1.2. International tourist arrivals ............................................................................................ 6 1.3. A fragmented industry .................................................................................................... 7 1.4. Employment .................................................................................................................... 11 1.5. Working conditions ......................................................................................................... 14 1.6. Social dialogue ................................................................................................................ 18 1.7. Economic development, poverty reduction and foreign direct investment (FDI) .......... 19 2. The impact of the financial and economic crisis on the HCT industry ................................... 21 2.1. The effects of the global recession .................................................................................. 21 2.2. Employment impact and recovery .................................................................................. 23 2.3. Crisis impact on wages and working hours .................................................................... 25 2.4. Stimulus packages to limit the effects of the crisis ......................................................... 27 3. New forms of ownership and operations ................................................................................ 29 3.1. Introduction ..................................................................................................................... 29 3.2. Forms of ownership ........................................................................................................ 29 3.3. Impact on HRD, qualification and skills development .................................................. 33 4. Major trends and diversification in the hospitality and tourism sector ................................... 35 4.1. Ageing population and demographic change .................................................................. 35 4.2. Migration ........................................................................................................................ 36 4.3. Emerging markets ........................................................................................................... 38 4.4. Medical and wellness tourism ......................................................................................... 40 4.5. Information and communications technologies (ICTs) .................................................. 41 4.6. Climate change ............................................................................................................... 43 4.7. Diversification of tourism products ................................................................................ 45 4.8. Impact on HRD, qualification and skills development ................................................... 46 GDFHTS-R-[2010-08-0058-1]-En.docv2 v 5. Sustainable tourism and social dialogue ................................................................................. 48 5.1. Sustainability – Key for economic growth, employment creation and decent work ...... 48 Sustainable development .............................................................................................. 48 Sustainable tourism ....................................................................................................... 48 Sustainable enterprise development .............................................................................. 50 5.2. Corporate social responsibility and international framework agreements ...................... 52 Corporate social responsibility ..................................................................................... 52 International Framework Agreements .......................................................................... 54 5.3. International instruments aimed to promote tourism sustainability ............................... 55 5.4. Sustainable measures and initiatives undertaken by the tourism industry ...................... 56 5.5. Paths towards sustainable tourism .................................................................................
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